HomeMy WebLinkAboutC-4436 (Fin. Reports) - Tourism Business Improvement District Management Agreement (FInancial Reports)VISIT
NLWP RT
BEACIA 10
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2023
Year To Date Year To Date
11/30/2023 11/30/2022
$ Variance Year over
2,424,733.51
2,237,223.22
187,510.29
2,424,733.51
2,237,223.22
187,510.29
5,967.82
995.79
4,972.03
5,967.82
995.79
4,972.03
Total Operating Revenue
2,430,701.33
2,238,219.01
192,482.32
Expenses
Salary and Wages
61010 - Salaries and Wages
511,051.53
356,137.43
154,914.10
61015 - Bonuses and Commissions
89,258.81
97,139.14
(7,880.33)
61020 - Auto Allowance
10,200.00
6,700.00
3,500.00
61030 - Payroll Tax Expenses
43,026.59
29,288.18
13,738.41
Total Salary and Wages
653,536.93
489,264.75
164,272.18
Benefits
61110 - Medical Insurance
64,293.65
40,385.65
23,908.00
61115 - Benefit Administrative Fees
150.00
150.00
0.00
61120 - Dental Insurance
3,293.55
2,632.37
661.18
61125 - Vision Insurance
643.90
467.82
176.08
61130 - Life and Disability
9,466.93
6,796.90
2,670.03
61140 - Retirement Plan (401k)
46,524.68
32,341.68
14,183.00
61150 - Flexible Spending Plan
547.60
343.75
203.85
61160 - Employee Engagement Benefit
3,193.25
7,069.72
(3,876.47)
Total Benefits
128,113.56
90,187.89
37,925.67
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
1,202.99
450.54
752.45
64101- Kitchen Supplies
1,464.61
0.00
1,464.61
64110 - Office Equipment Leases
1,198.52
0.00
1,198.52
64115 - Office Equipment (non-deprec)
434.12
7,984.41
(7,550.29)
64120 - Equipment Repairs & Maintenance
12,065.93
9,517.08
2,548.85
64125 - Computer Software (non-deprec)
12,401.70
5,638.64
6,763.06
64130 - Voice and Data - Office
3,493.76
3,076.57
417.19
64135 - Telephone - Mobile
6,075.00
4,800.00
1,275.00
64140 - Postage
500.00
217.05
282.95
64145 - Shipping Charges
451.82
425.71
26.11
64150 - Bank Fees
190.00
40.00
150.00
64160 - Membership Dues
30,022.75
26,493.53
3,529.22
64165 - Subscriptions
120.00
0.00
120.00
64170 - Team Meetings
3,378.20
3,555.60
(177.40)
64175 - Governance Meeting Expenses
0.00
131.80
(131.80)
64180 - Education
8,064.00
0.00
8,064.00
64300 - Depreciation Expense
15,149.08
3,265.77
11,883.31
64600 - Business Meals/Entertainment
1,810.80
3,818.17
(2,007.37)
Total Operating Expenses
98,023.28
69,414.87
28,608.41
VISIT
NLWP RT
BEACIA 10
CALIFORNIA
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2023
64202 - Tax Preparation Fees
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101- Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
67101- Research
Total Advertising Expenses
Marketing Expenses
Marketing Collateral
67311- Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503-SEO/SEM
66211- CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
International Marketing Initiatives
67404 - International Trade Shows
Total International Marketing Initiatives
Year To Date
Year To Date
11/30/2023
11/30/2022
$ Variance Year over
91,539.02
50,714.64
40,824.38
534.46
874.50
(340.04)
0.00
357.79
(357.79)
737.50
2,660.48
(1,922.98)
92,810.98
54,607.41
38,203.57
5,631.83
3,294.63
Z337.20
1,777.67
1,769.34
8.33
7,409.50
5,063.97
2,345.53
0.00
1,402.52
821.13
27,000.00
1,000.00
1,500.00
31,245.56
62,969.21
5.99
5,212.31
1,027.40
587.74
166.00
1,200.00
1,335.68
12,805.63
27,000.00
0.00
0.00
0.00
42,341.31
3,120.27
1,499.18
470.74
774.34
142.03
6,999.44
6,006.56
268,212.41
177,434.12
0.00
15,000.00
43,136.75
3,747.85
14,932.86
14,729.27
0.00
2,583.56
86,478.89
183.64
0.00
144, 548.50
10,930.44
10,930.44
1,262.78
1,850.00
36,922.61
40,035.39
50,965.83
2,000.00
2,000.00
1,369.86
37,614.18
0.00
0.00
24,782.64
0.00
39,504.56
64,287.20
64,287.20
0.00
0.00
(1,200.00)
66.84
(11, 984.50)
0.00
1,000.00
1,500.00
31,245.56
20,627.90
(3,114.28)
3,713.13
556.66
(186.60)
23.97
992.88
90,778.29
(15, 000.00)
39,388.90
203.59
(2,583.56)
86,295.25
(1,369.86)
106, 934.32
10,930.44
10, 930.44
(23,519.86)
1,850.00
(2,581.95)
(24,251.81)
(13,321.37)
2, 000.00
2.000.00
VISIT
NLVIAP RT
BEACIA
CALIFORNIA
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2023
Year To Date
Year To Date
11/30/2023
11/30/2022
$ Variance Year over
27,531.80
18,119.68
9,412.12
127,135.00
86,234.00
40,901.00
122,728.72
69,832.32
52,896.40
277,395.52
174,186.00
103,209.52
183,324.98
123,074.00
60,250.98
500.00
7,064.55
(6,564.55)
121,795.92
56,775.00
65,020.92
18,072.10
0.00
18,072.10
323,693.00
186,913.55
136,779.45
22,383.00
9,626.17
12,756.83
285,041.57
12,260.52
272,781.05
0.00
1,569.18
(1,569.18)
119,700.00
100,482.00
19,218.00
427,124.57
123,937.87
303,186.70
1,028,213.09
485,037.42
543,175.67
121,232.25
27,296.00
93,936.25
10,773.32
4,307.73
6,465.59
28,665.13
25,527.61
3,137.52
160,670.70
57,131.34
103,539.36
2,436,261.02 1,400,956.90 1,035,304.12
Net Income (Loss) (5,559.69) 837,262.11 (842,821.80)
VISIT
L �� � � ..Iw Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2023
BEACH 19
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating
Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64170
- Team Meetings
Year To Date
Year To Date
10/31/2023
10/31/2022
$ Variance Year over
1,981,659.65
1,808,376.73
173,282.92
1,981,659.65
1,808,376.73
173,282.92
4,754.44
731.23
4,023.21
4,754.44
731.23
4,023.21
1,986,414.09
1,809,107.96
177,306.13
396,094.31
280,355.12
115,739.19
89,258.81
97,139.14
(7,880.33)
8,160.00
5,360.00
2,800.00
35,125.83
24,024.50
11,101.33
528,638.95
406,878.76
121,760.19
53,081.19
33,627.00
19,454.19
125.00
125.00
0.00
2,786.76
2,245.09
541.67
535.94
412.29
123.65
7,804.18
6,078.51
1,725.67
37,164.89
26,708.05
10,456.84
602.41
281.25
321.16
2,593.25
2,632.54
(39.29)
104,693.62
72,109.73
32,583.89
598.44
64.80
533.64
1,236.43
0.00
1,236.43
971.44
0.00
971.44
434.12
5,223.42
(4,789.30)
9,674.18
9,517.08
157.10
10,326.98
4,538.00
5,788.98
2,798.48
2,381.67
416.81
4,800.00
3,600.00
1,200.00
0.00
200.00
(200.00)
304.24
366.95
(62.71)
140.00
40.00
100.00
29,587.75
26,493.53
3,094.22
3,230.12
2,779.56
450.56
VISIT
L �� � � ..Iw Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2023
BEACH 10
CALIFORNIA
64175 - Governance Meeting Expenses
64180 - Education
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
67101 - Research
Total Advertising Expenses
Year To Date
Year To Date
10/31/2023
10/31/2022
$ Variance Year over
0.00
131.80
(131.80)
4,064.00
0.00
4,064.00
12,110.60
2,650.55
9,460.05
805.36
1,971.38
(1,166.02)
81,082.14
59,958.74
21,123.40
73,110.41
34,036.74
39,073.67
534.46
874.50
(340.04)
0.00
357.79
(357.79)
590.00
1,563.23
(973.23)
74,234.87
36,832.26
37,402.61
5,631.83
3,294.63
2,337.20
1,777.67
1,769.34
8.33
7,409.50
5,063.97
2,345.53
0.00
960.00
(960.00)
1,102.10
1,043.25
58.85
743.00
7,658.13
(6,915.13)
27,000.00
27,000.00
0.00
1,000.00
0.00
1,000.00
25,065.68
0.00
25,065.68
54,910.78
36,661.38
18,249.40
5.99
3,120.27
(3,114.28)
5,212.31
1,499.18
3,713.13
1,013.10
344.79
668.31
587.74
774.34
(186.60)
166.00
127.03
38.97
6,985.14
5,865.61
1,119.53
224,622.43
144,381.96
80,240.47
0.00
15,000.00
(15,000.00)
28,247.50
3,747.85
24,499.65
3,608.26
11,526.87
(7,918.61)
0.00
2,583.56
(2,583.56)
86,478.89
183.64
86,295.25
0.00
1,369.86
(1,369.86)
118,334.65
34,411.78
83,922.87
VISIT
L �� � � ..Iw Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2023
BEACH 19
CALIFORNIA
Marketing Expenses
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - SEC/SEM
66211 - CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
International Marketing Initiatives
67404 - International Trade Shows
Total International Marketing Initiatives
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income (Loss)
Year To Date Year To Date
10/31/2023 10/31/2022
$ Variance Year over
10,930.44
0.00
10,930.44
10,930.44
0.00
10,930.44
1,262.78
18,857.64
(17,594.86)
1,387.50
0.00
1,387.50
36,922.61
39,504.56
(2,581.95)
39,572.89
58,362.20
(18,789.31)
50,503.33
58,362.20
(7,858.87)
2,000.00
0.00
2,000.00
2,000.00
0.00
2,000.00
19,752.04
11,268.06
8,483.98
123,635.00
80,616.00
43,019.00
95,585.34
38,033.23
57,552.11
238,972.38
129,917.29
109,055.09
156,294.98
44,572.00
111,722.98
500.00
5,760.36
(5,260.36)
118,587.92
51,325.00
67,262.92
18,000.00
0.00
18,000.00
293,382.90
101,657.36
191,725.54
21,192.53
8,235.53
12,957.00
224,771.94
11,480.41
213,291.53
0.00
1,569.18
(1,569.18)
119,700.00
100,482.00
19,218.00
365,664.47
121,767.12
243,897.35
898,019.75
353,341.77
544,677.98
90,919.25
7,116.00
83,803.25
10,284.82
4,091.85
6,192.97
13,404.31
15,616.45
(2,212.14)
114,608.38
26,824.30
87,784.08
2,041,421.11
1,096,310.50
945,110.61
(55,007.02)
712,797.46
(767,804.48)
VISIT
NEWPORT
BEACH 0
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2023
Year To Date Year To Date
08/31/2023 08/31/2022
$ Variance Year over
880,824.01
790,503.37
90,320.64
880,824.01
790,503.37
90,320.64
2,430.14
310.32
2,119.82
2,430.14
310.32
2,119.82
883,2S4.1S
790,813.69
92,440.46
189,624.34
134,502.05
55,122.29
78,468.00
91,031.13
(12,563.13)
4,080.00
2,580.00
1,500.00
20,229.74
14,122.75
6,106.99
292,402.08
242,23S.93
50,166.15
30,503.73
19,502.86
11,000.87
75.00
75.00
0.00
1,688.82
1,300.25
388.57
312.02
233.47
78.55
4,478.68
3,047.26
1,431.42
19,422.10
14,328.77
5,093.33
477.41
156.25
321.16
1,604.58
1,873.98
(269.40)
S8,S62.34
40,517.84
18,044.50
421.51
0.00
421.51
854.94
0.00
854.94
454.16
0.00
454.16
434.12
3,051.07
(2,616.95)
4,789.65
5,120.98
(331.33)
8,202.51
4,428.00
3,774.51
1,408.80
1,191.18
217.62
2,400.00
1,800.00
600.00
162.36
56.86
105.50
40.00
40.00
0.00
29,587.75
26,493.53
3,094.22
1,195.01
2,104.16
(909.15)
0.00
131.80
(131.80)
3,639.50
0.00
3,639.50
6,033.64
1,356.92
4,676.72
275.42
536.60
(261.18)
S9,899.37
46,311.10
13,588.27
VISIT
N LVIAPORT
BEACH 0
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2023
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
Total Advertising Expenses
Marketing Expenses
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - SEO/SEM
66211 - CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
International Marketing Initiatives
67404 - International Trade Shows
Total International Marketing Initiatives
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
Year To Date
Year To Date
08/31/2023
08/31/2022
$ Variance Year over
52,931.10
34,036.74
18,894.36
534.46
0.00
534.46
0.00
357.79
(357.79)
295.00
671.74
(376.74)
53,760.56
35,066.27
18,694.29
3,984.83
3,294.63
690.20
1,777.67
1,769.34
8.33
5,762.50
5,063.97
698.53
526.37
528.20
(1.83)
743.00
6,662.50
(5,919.50)
5,000.00
0.00
5,000.00
6,269.37
7,190.70
(921.33)
0.00
3,120.27
(3,120.27)
3,047.23
1,378.20
1,669.03
671.87
314.15
357.72
353.87
705.33
(351.46)
124.00
105.03
18.97
4,196.97
5,622.98
(1,426.01)
129,888.77
99,255.02
30,633.75
12,927.35
3,367.85
9,559.50
1,608.71
1,000.00
608.71
0.00
2,583.56
(2,583.56)
0.00
183.64
(183.64)
14,536.06
7,135.05
7,401.01
551.69
0.00
551.69
551.69
0.00
551.69
956.11
9,742.65
(8,786.54)
462.50
0.00
462.50
36,922.61
30,713.04
6,209.57
38,341.22
40,455.69
(2,114.47)
38,892.91
40,455.69
(1,562.78)
2,000.00
0.00
2,000.00
2,000.00
0.00
2,000.00
4,800.68
3,253.49
1,547.19
93,585.00
68,235.00
25,350.00
VISIT
N LVIAPORT
BEACH 0
CALIFORNIA
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income (Loss)
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2023
Year To Date Year To Date
08/31/2023 08/31/2022
$ Variance Year over
2,415.90
7,111.18
(4,695.28)
100,801.58
78,599.67
22,201.91
80,592.98
26,372.00
54,220.98
500.00
2,995.51
(2,495.51)
118,587.92
25,975.00
92,612.92
10,000.00
0.00
10,000.00
209,680.90
55,342.51
154,338.39
11,330.70
5,289.34
6,041.36
162,101.01
1,236.00
160,865.01
0.00
1,457.12
(1,457.12)
118,300.00
98,932.00
19,368.00
291,731.71
106,914.46
184,817.25
602,214.19
240,856.64
361,357.55
35,790.00
(432.00)
36,222.00
1,208.48
4,021.49
(2,813.01)
8,456.55
12,376.00
(3,919.45)
45,455.03
15,965.49
29,489.54
1,183,951.38
686,421.66
497,529.72
(300,697.23)
104,392.03
(405,089.26)
VISIT
Visit Newport Beach, Inc. Group Sales (TBID)
E W P O f I" Statement of Activities YoY for September 2023
BEACH H
CALIFORNIA
Year To Date Year To Date
09/30/2023 09/30/2022
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
1,493,330.19
1,337,468.76
155,861.43
Total Revenue
1,493,330.19
1,337,468.76
155,861.43
Other Income
46001- Interest Income
3,354.71
489.85
Z864.86
Total Other Income
3,3S4.71
489.8S
2,864.86
Total Operating Revenue
1,496,684.90
1,337,9S8.61
158,726.29
Expenses
Salary and Wages
61010 - Salaries and Wages
292,806.50
207,428.58
85,377.92
61015 - Bonuses and Commissions
89,258.81
97,139.14
(7,880.33)
61020 - Auto Allowance
6,120.00
3,970.00
Z150.00
61030 - Payroll Tax Expenses
28,099.43
19,314.57
8,784.86
Total Salary and Wages
416,284.74
327,SS2.29
88,432.45
Benefits
61110 - Medical Insurance
41,792.46
28,888.43
1Z904.03
61115 - Benefit Administrative Fees
100.00
100.00
0.00
61120 - Dental Insurance
2,237.79
1,753.73
484.06
61125 - Vision Insurance
423.98
313.20
110.78
61130 - Life and Disability
6,141.43
4,812.83
1,328.60
61140 - Retirement Plan (401k)
28,703.14
20,762.73
7,940.41
61150 - Flexible Spending Plan
539.91
218.75
321.16
61160 - Employee Engagement Benefit
2,170.53
2,263.73
(93.20)
Total Benefits
82,109.24
59,113.40
22,995.84
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
581.34
52.80
528.54
64101- Kitchen Supplies
888.94
0.00
888.94
64110 - Office Equipment Leases
744.35
0.00
744.35
64115 - Office Equipment (non-deprec)
434.12
3,051.07
(2,616.95)
64120 - Equipment Repairs & Maintenance
7,251.28
7,309.78
(58.50)
64125 - Computer Software (non-deprec)
9,133.21
4,538.00
4,595.21
64130 - Voice and Data - Office
2,103.20
1,786.77
316.43
64135 - Telephone - Mobile
3,600.00
2,700.00
900.00
64140 - Postage
0.00
200.00
(200.00)
64145 - Shipping Charges
242.46
92.07
150.39
64150 - Bank Fees
90.00
40.00
50.00
64160 - Membership Dues
29,587.75
26,493.53
3,094.22
64170 - Team Meetings
3,146.86
2,763.56
383.30
64175 - Governance Meeting Expenses
0.00
131.80
(131.80)
64180 - Education
4,064.00
0.00
4,064.00
64300 - Depreciation Expense
9,072.12
2,035.33
7,036.79
64600 - Business Meals/Entertainment
647.24
1,771.19
(1,123.95)
Total Operating Expenses
71,586.87
S2,96S.90
18,620.97
VISIT
NEWPORT
BEACH f)
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2023
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
Total Advertising Expenses
Marketing Expenses
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - SEO/SEM
66211 - CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
International Marketing Initiatives
67404 - International Trade Shows
Total International Marketing Initiatives
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
Year To Date Year To Date
09/30/2023 09/30/2022
$ Variance Year over
54,681.81
34,036.74
20,645.07
534.46
220.00
314.46
0.00
357.79
(357.79)
442.50
1,108.99
(666.49)
55,658.77
35,723.52
19,935.25
5,631.83
3,294.63
2,337.20
1,777.67
1,769.34
8.33
7,409.50
5,063.97
2,345.53
0.00
560.00
(560.00)
809.87
787.04
22.83
743.00
7,501.88
(6,758.88)
27,000.00
27,000.00
0.00
1,000.00
0.00
1,000.00
16,165.68
0.00
16,165.68
45,718.55
35,848.92
9,869.63
5.99
3,120.27
(3,114.28)
3,789.47
1,499.18
2,290.29
679.43
344.79
334.64
520.80
774.34
(253.54)
166.00
127.03
38.97
5,161.69
5,865.61
(703.92)
185,535.38
135,467.92
50,067.46
17,404.70
3,747.85
13,656.85
1,608.71
11,526.87
(9,918.16)
0.00
2,583.56
(2,583.56)
77,803.89
183.64
77,620.25
96,817.30
18,041.92
78,775.38
10,930.44
0.00
10, 930.44
10,930.44
0.00
10,930.44
1,130.28
12,742.65
(11,612.37)
925.00
0.00
925.00
36,922.61
39,504.56
(2,581.95)
38,977.89
52,247.21
(13,269.32)
49,908.33
52,247.21
(2,338.88)
2,000.00
0.00
2,000.00
2,000.00
0.00
2,000.00
8,657.54
6,833.88
1,823.66
VISIT
NEWPORT
BEACH ()
CALIFORNIA
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income (Loss)
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2023
Year To Date Year To Date
09/30/2023 09/30/2022
$ Variance Year over
117,525.00
76,116.00
41,409.00
74,181.52
32,916.71
41,264.81
200,364.06
115,866.59
84,497.47
127,294.98
29,072.00
98,222.98
500.00
5,579.98
(5,079.98)
118,587.92
30,975.00
87,612.92
18,000.00
0.00
18,000.00
264,382.90
65,626.98
198,755.92
13,660.47
6,589.73
7,070.74
199,712.60
10,651.82
189, 060.78
0.00
1,569.18
(1,569.18)
119,700.00
100,482.00
19,218.00
333,073.07
119,292.73
213,780.34
797,820.03
300,786.30
497,033.73
73,719.25
2,068.00
71,651.25
3,903.67
4,021.49
(117.82)
10,936.81
15,616.45
(4,679.64)
88,559.73
21,705.94
66,853.79
1,719,034.75
915,214.98
803,819.77
(222,349.1!a
422,743.63
(645,093.48)
Company name:
Visit Newport Beach, Inc. TBID
Report name:
Check Register
Period:
July 1, 2023 to September 30, 2023
Location:
400--Visit Newport Beach, Inc. Group
Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California
Bank and Ti Account no: 5798822408
7/5/2023
V01218--UPS
6/24/23 UPS NBC
5.33
7/5/2023
V01218--UPS
6/24/23 UPS TOT
5.34
7/5/2023
V01218--UPS
6/24/23UPS TBID
5.33
7/5/2023
V02027--Aquatech Water Systems, Inc.
8353
34.00
7/5/2023
V02076--ADM Technology Consulting
8352
203.87
7/5/2023
V01621--AmTrust North America
8351
3,705.50
7/5/2023
V01620--Lido House, LLC
8350
1,200.00
7/5/2023
V01620--Lido House, LLC
8349
1,000.00
7/5/2023
V00773--VEA Newport Beach
8348
1,000.00
7/5/2023
V00773--VEA Newport Beach
8347
21,000.00
7/5/2023
V01190--Transamerica Retirement Solutions
PP 6-30-23 401(
7,269.08
7/6/2023
V01842--Sterling Administration
6/30/23 FSA NBC
389.92
7/6/2023
V01842--Sterling Administration
6/30/23FSA TBID
642.31
7/7/2023
V01245--Visit Anaheim
8370
13,580.00
7/7/2023
V01474--Renaissance Newport Beach
8369
1,000.00
7/7/2023
V00102--Balboa Bay Resort
8368
3,000.00
7/7/2023
V00773--VEA Newport Beach
8367
4,040.00
7/7/2023
V00773--VEA Newport Beach
8366
2,000.00
7/7/2023
V00773--VEA Newport Beach
8365
1,000.00
7/7/2023
V01474--Renaissance Newport Beach
8364
500.00
7/7/2023
V02078--Patty Guglielmino
8363
373.77
7/7/2023
V02058--Black Truck Media Marketing LLC
8362
462.50
7/7/2023
V01225--US Travel Association
8361
13,068.75
7/7/2023
V00526--Hyatt Regency Newport Beach
8360
1,000.00
7/7/2023
V01030--Simpleview, Inc.
8359
18,500.00
7/7/2023
V00267--Conference Direct
8358
52,000.00
7/7/2023
V01474--Renaissance Newport Beach
8357
2,000.00
7/7/2023
V00526--Hyatt Regency Newport Beach
8356
4,649.13
7/7/2023
V00890--Performance Solutions Group
8355
1,912.00
7/7/2023
V02077--Eventis Destination Services, LLC.
8354
8,856.50
7/7/2023
V02079--360 DG OCLA, LLC
1301
2,550.00
7/10/2023
V00102--Balboa Bay Resort
8372
500.00
7/10/2023
V02080--Phoenix Decorating Company, Inc.
8371
87,500.00
7/10/2023
V02031--WVE Labs, LLC
1302
6,120.00
7/11/2023
V00053--American Express
6/23 AMEX TBID
45,059.08
7/11/2023
V01218--UPS
7/1/23 UPS TBID
5.33
7/11/2023
V01218--UPS
7/1/23 UPS TOT
5.34
7/11/2023
V01218--UPS
7/1/23 UPS NBC
5.33
7/11/2023
V02081--Lisa Bell
1303
720.28
7/14/2023
V01842--Sterling Administration
6/23FSA Fee NBC
62.50
7/14/2023
V01842--Sterling Administration
6/23FSAFeeTBID
62.50
7/18/2023
V01218--UPS
7/8/23 UPS TOT
5.34
7/18/2023
V01218--UPS
7/8/23 UPS -NBC
5.33
7/18/2023
V01218--UPS
7/8/23 UPS NBC
5.33
7/18/2023
V01842--Sterling Administration
7/14/23FSA TBID
642.31
7/18/2023
V01842--Sterling Administration
7/14/23 FSA NBC
389.92
7/18/2023
V02083--Michelle Miner
8375
500.00
7/18/2023
V00767--Newport Beach Bayview Marriott
8374
5,206.76
7/18/2023
V00102--Balboa Bay Resort
8373
1,083.33
7/19/2023
V01190--Transamerica Retirement Solutions
PP 7-14-23 401(
16,004.17
7/19/2023
V00130--Best Chauffeured Worldwide
8379
208.07
7/19/2023
V02084--Aree Wichman
8378
385.46
7/19/2023
V02085--Maggie Steinhauser
8377
500.00
7/19/2023
V01835--Voda Films
8376
4,000.00
7/20/2023
V00150--Blue Shield of California
8/23 BlueShield
4,880.77
7/20/2023
V01564--Standard Insurance RAS Executive
8381
517.13
7/20/2023
V01563--Standard Insurance Company
8380
636.05
7/21/2023
V01740--Choice Builder
8/23 Dental/Vis
659.80
7/24/2023
V02086--Dorothy Martin
1304
500.00
7/25/2023
V01218--UPS
7/15/23 UPS NBC
5.33
7/25/2023
V01218--UPS
7/15/23 UPS TOT
5.34
7/25/2023
V01218--UPS
7/25/23 UPS NBC
5.33
7/26/2023
V01143--The Irvine Company, LLC
823 - Server Ro
110.31
7/26/2023
V01143--The Irvine Company, LLC
8/23 Irvine Co.
16,677.90
7/27/2023
V01632--Madden Preprint Media LLC
8398
174.17
7/27/2023
V02087--Jennifer Summers
8397
500.00
7/27/2023
V00102--Balboa Bay Resort
8396
1,500.00
7/27/2023
V00773--VEA Newport Beach
8395
5,000.00
7/27/2023
V00773--VEA Newport Beach
8394
3,000.00
7/27/2023
V00773--VEA Newport Beach
8393
1,000.00
7/27/2023
V00773--VEA Newport Beach
8392
3,000.00
7/27/2023
V01474--Renaissance Newport Beach
8391
3,000.00
7/27/2023
V01474--Renaissance Newport Beach
8390
3,000.00
7/27/2023
V00767--Newport Beach Bayview Marriott
8389
408.00
Company name:
Visit Newport Beach, Inc. TBID
Report name:
Check Register
Period:
July 1, 2023 to September 30, 2023
Location:
400--Visit Newport Beach, Inc. Group
Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California
Bank and Tr Account no: 5798822408
7/27/2023
V00947--Hyatt Regency John Wayne Airport NB
8388
4,500.00
7/27/2023
V00773--VEA Newport Beach
8387
1,000.00
7/27/2023
V01620--Lido House, LLC
8386
377.50
7/27/2023
V00767--Newport Beach Bayview Marriott
8385
557.00
7/27/2023
V01620--Lido House, LLC
8384
605.99
7/27/2023
V01474--Renaissance Newport Beach
8383
297.40
7/27/2023
V00102--Balboa Bay Resort
8382
250.00
7/27/2023
V01498--Newport Beach Country Club
1305
575.00
7/31/2023
V00102--Balboa Bay Resort
8404
1,000.00
7/31/2023
V00102--Balboa Bay Resort
8403
1,000.00
7/31/2023
V01038--Skyward Technical Solutions
8402
3,003.74
7/31/2023
V00890--Performance Solutions Group
8401
743.00
7/31/2023
V02089--Missy Erickson
8400
720.56
7/31/2023
V02090--Maripat Traino
8399
689.51
8/1/2023
V01190--Transamerica Retirement Solutions
PP 7-28-23 401(
7,591.73
8/1/2023
V01842--Sterling Administration
7/28/23 FSA NBC
389.92
8/1/2023
V01842--Sterling Administration
7/28/23FSA TBID
642.31
8/1/2023
V01218--UPS
7/22/23 UPS NBC
5.33
8/1/2023
V01218--UPS
7/22/23 UPS TOT
5.34
8/1/2023
V01218--UPS
7/22/23UPS TBID
5.33
8/2/2023
V01474--Renaissance Newport Beach
1306
3,000.00
8/3/2023
V01474--Renaissance Newport Beach
8414
500.00
8/3/2023
V01474--Renaissance Newport Beach
8413
1,728.04
8/3/2023
V01474--Renaissance Newport Beach
8412
517.20
8/3/2023
V01474--Renaissance Newport Beach
8411
1,000.00
8/3/2023
V00102--Balboa Bay Resort
8410
1,000.00
8/3/2023
V00102--Balboa Bay Resort
8409
1,655.02
8/3/2023
V01474--Renaissance Newport Beach
8408
200.00
8/3/2023
V00526--Hyatt Regency Newport Beach
8407
1,500.00
8/3/2023
V01632--Madden Preprint Media LLC
8406
174.17
8/3/2023
V01474--Renaissance Newport Beach
8405
1,000.00
8/7/2023
V00921--Prestige Global Meeting Source
8415
12,500.00
8/7/2023
V00947--Hyatt Regency John Wayne Airport NB
1307
3,300.00
8/8/2023
V01218--UPS
7/29/23 UPS NBC
5.33
8/8/2023
V01218--UPS
7/29/23 UPS TOT
5.34
8/8/2023
V01218--UPS
7/29/23UPS TBID
5.33
8/8/2023
V02031--WVE Labs, LLC
8416
830.00
8/11/2023
V00053--American Express
7/23 AMEX TBID
39,298.17
8/15/2023
V01218--UPS
8/5/23 UPS TBID
119.72
8/15/2023
V01842--Sterling Administration
7/23FSAFees NBC
62.50
8/15/2023
V01842--Sterling Administration
7/23FSAFeeTBID
62.50
8/15/2023
V01842--Sterling Administration
8/11/23 FSA NBC
389.92
8/15/2023
V01842--Sterling Administration
8/11/23FSA TBID
642.31
8/15/2023
V01593--J.C.M. Painting
8417
350.00
8/16/2023
V01190--Transamerica Retirement Solutions
PP 8-11-23 401(
7,636.36
8/16/2023
V00773--VEA Newport Beach
8441
3,000.00
8/16/2023
V00947--Hyatt Regency John Wayne Airport NB
8440
1,000.00
8/16/2023
V00773--VEA Newport Beach
8439
5,073.00
8/16/2023
V00102--Balboa Bay Resort
8438
2,000.00
8/16/2023
V00773--VEA Newport Beach
8437
2,500.00
8/16/2023
V01620--Lido House, LLC
8436
1,000.00
8/16/2023
V01474--Renaissance Newport Beach
8435
1,000.00
8/16/2023
V02095--Carolyn Sterb-
8434
443.97
8/16/2023
V02096--Doug Peterson
8433
500.00
8/16/2023
V02097--Sheldon Garcia
8432
456.39
8/16/2023
V01620--Lido House, LLC
8431
1,000.00
8/16/2023
V00767--Newport Beach Bayview Marriott
8430
2,200.00
8/16/2023
V00773--VEA Newport Beach
8429
2,500.00
8/16/2023
V00773--VEA Newport Beach
8428
5,000.00
8/16/2023
V00102--Balboa Bay Resort
8427
500.00
8/16/2023
V00773--VEA Newport Beach
8426
750.00
8/16/2023
V00947--Hyatt Regency John Wayne Airport NB
8425
3,000.00
8/16/2023
V01620--Lido House, LLC
8424
1,000.00
8/16/2023
V00102--Balboa Bay Resort
8423
1,000.00
8/16/2023
V00773--VEA Newport Beach
8422
3,000.00
8/16/2023
V00773--VEA Newport Beach
8421
3,000.00
8/16/2023
V00773--VEA Newport Beach
8420
840.00
8/16/2023
V01620--Lido House, LLC
8419
450.00
8/16/2023
V02094--Kendall House
8418
400.00
8/17/2023
V02098--Faye Fukuda
8442
462.85
8/18/2023
V00150--Blue Shield of California
9/23 BlueShield
4,880.77
8/21/2023
V01564--Standard Insurance RAS Executive
8443
517.13
8/22/2023
V01218--UPS
8/12/23 UPS NBC
5.33
8/22/2023
V01218--UPS
8/12/23 UPS TOT
5.34
Company name:
Visit Newport Beach, Inc. TBID
Report name:
Check Register
Period:
July 1, 2023 to September 30, 2023
Location:
400--Visit Newport Beach, Inc. Group
Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California
Bank and Tr Account no: 5798822408
8/22/2023
V01218--UPS
8/12/23UPS TBID
5.33
8/22/2023
V01740--Choice Builder
9/23 Dental/Vis
659.80
8/24/2023
V01837--Philadelphia Indemnity Insurance Coml
8453
1,777.67
8/24/2023
V01474--Renaissance Newport Beach
8452
279.00
8/24/2023
V00798--Northstar Travel Media
8451
5,300.00
8/24/2023
V01474--Renaissance Newport Beach
8450
644.40
8/24/2023
V00608--KM3 Corbin and Co.
8449
5,500.00
8/24/2023
V01563--Standard Insurance Company
8448
636.05
8/24/2023
V02101--Katie Yearby
8447
500.00
8/24/2023
V02100--Katherine Fowler
8446
225.60
8/24/2023
V02058--Black Truck Media Marketing LLC
8445
462.50
8/24/2023
V01246--Visit California
8444
2,000.00
8/29/2023
V01632--Madden Preprint Media LLC
8456
174.17
8/29/2023
V01218--UPS
8/19/23 UPS NBC
5.33
8/29/2023
V01218--UPS
8/19/23 UPS TOT
5.34
8/29/2023
V01218--UPS
8/19/23UPS TBID
5.33
8/29/2023
V01190--Transamerica Retirement Solutions
PP 8-25-23 401(
7,634.00
8/29/2023
V01842--Sterling Administration
8/25/23 FSA NBC
389.92
8/29/2023
V01842--Sterling Administration
8/25/23FSA TBID
642.31
8/29/2023
V00767--Newport Beach Bayview Marriott
8455
552.00
8/29/2023
V00767--Newport Beach Bayview Marriott
8454
1,145.00
8/29/2023
V01498--Newport Beach Country Club
1308
1,728.24
8/30/2023
V00102--Balboa Bay Resort
8463
1,000.00
8/30/2023
V02104--Internet Marketing Association, Inc.
8462
25,000.00
8/30/2023
V00767--Newport Beach Bayview Marriott
8461
182.98
8/30/2023
V00102--Balboa Bay Resort
8460
1,000.00
8/30/2023
V01474--Renaissance Newport Beach
8459
2,000.00
8/30/2023
V00733--MPI
8458
530.00
8/30/2023
V01038--Skyward Technical Solutions
8457
3,127.54
8/31/2023
V01143--The Irvine Company, LLC
923 - Server Ro
134.65
8/31/2023
V01143--The Irvine Company, LLC
9/23 Irvine Com
16,677.90
8/31/2023
V01030--Simpleview, Inc.
8466
9,250.00
8/31/2023
V00130--Best Chauffeured Worldwide
8465
277.76
8/31/2023
V00102--Balboa Bay Resort
8464
3,000.00
9/1/2023
V02027--Aquatech Water Systems, Inc.
8467
34.00
9/5/2023
V01218--UPS
8/26/23 UPS NBC
5.33
9/5/2023
V01218--UPS
8/26/23 UPS TOT
5.34
9/5/2023
V01218--UPS
8/26/23UPS TBID
5.33
9/5/2023
V02024--Newport Pacific Law, P.C.
8468
5,000.00
9/6/2023
V01474--Renaissance Newport Beach
8473
1,000.00
9/6/2023
V01620--Lido House, LLC
8472
1,000.00
9/6/2023
V01474--Renaissance Newport Beach
8471
500.00
9/6/2023
V00102--Balboa Bay Resort
8470
500.00
9/6/2023
V01620--Lido House, LLC
8469
1,000.00
9/7/2023
V02108--Darell Stokes
1309
452.96
9/12/2023
V01218--UPS
9/2/23 UPS TBID
5.33
9/12/2023
V01218--UPS
9/2/23 UPS TOT
5.34
9/12/2023
V01218--UPS
9/2/23 UPS NBC
5.33
9/12/2023
V01842--Sterling Administration
PP9/8/23FSA NBC
389.92
9/12/2023
V01842--Sterling Administration
PP9/8/23FSATBID
642.31
9/12/2023
V01190--Transamerica Retirement Solutions
PP 9-8-23 401(k
7,633.99
9/13/2023
V00053--American Express
8/23 AMEX TBID
21,401.10
9/14/2023
V01842--Sterling Administration
8/23FSAFeesNBC
62.50
9/14/2023
V01842--Sterling Administration
8/23FSAFeeTBID
62.50
9/14/2023
V00130--Best Chauffeured Worldwide
8484
3,512.47
9/14/2023
V00102--Balboa Bay Resort
8483
2,000.00
9/14/2023
V01878--Carrie Audino Strain
8482
820.00
9/14/2023
V02110--Megan Fosse
8481
237.80
9/14/2023
V01474--Renaissance Newport Beach
8480
1,000.00
9/14/2023
V01474--Renaissance Newport Beach
8479
1,000.00
9/14/2023
V00608--KM3 Corbin and Co.
8478
5,500.00
9/14/2023
V01474--Renaissance Newport Beach
8477
2,000.00
9/14/2023
V01474--Renaissance Newport Beach
8476
2,000.00
9/14/2023
V01474--Renaissance Newport Beach
8475
1,000.00
9/14/2023
V00245--Civitas
8474
4,575.00
9/18/2023
V01377--Newport Beach and Company
Q1_FY24 Market!
27,000.00
9/18/2023
V01953--Brandon Candler Tully
1310
603.40
9/19/2023
V01218--UPS
9/9/23 UPS NBC
5.33
9/19/2023
V01218--UPS
9/9/23 UPS TOT
5.34
9/19/2023
V01218--UPS
9/9/23 UPS TBID
5.33
9/20/2023
V02058--Black Truck Media Marketing LLC
8486
462.50
9/20/2023
V00321--Desert Publications Inc.
8485
10,378.75
9/21/2023
V01740--Choice Builder
10/23 Dental/Vi
659.80
9/26/2023
V01842--Sterling Administration
9/22/23 FSA NBC
389.92
Company name:
Visit Newport Beach, Inc. TBID
Report name:
Check Register
Period:
July 1, 2023 to September 30, 2023
Location:
400--Visit Newport Beach, Inc. Group
Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California
Bank and Tr Account no: 5798822408
9/26/2023
V01842--Sterling Administration
9/22/23FSA TBID
642.31
9/26/2023
V02111--Matthew Morgan Photography
8519
2,073.50
9/26/2023
V01474--Renaissance Newport Beach
8518
1,000.00
9/26/2023
V01474--Renaissance Newport Beach
8517
1,000.00
9/26/2023
V01474--Renaissance Newport Beach
8516
1,000.00
9/26/2023
V01474--Renaissance Newport Beach
8515
1,000.00
9/26/2023
V00773--VEA Newport Beach
8514
1,000.00
9/26/2023
V00767--Newport Beach Bayview Marriott
8513
2,398.00
9/26/2023
V00526--Hyatt Regency Newport Beach
8512
1,500.00
9/26/2023
V00773--VEA Newport Beach
8511
350.00
9/26/2023
V00102--Balboa Bay Resort
8510
4,000.00
9/26/2023
V00102--Balboa Bay Resort
8509
500.00
9/26/2023
V00102--Balboa Bay Resort
8508
500.00
9/26/2023
V01835--Voda Films
8507
73,365.00
9/26/2023
V00130--Best Chauffeured Worldwide
8506
729.86
9/26/2023
V01878--Carrie Audino Strain
8505
580.00
9/26/2023
V00526--Hyatt Regency Newport Beach
8504
500.00
9/26/2023
V00773--VEA Newport Beach
8503
1,000.00
9/26/2023
V00767--Newport Beach Bayview Marriott
8502
1,000.00
9/26/2023
V00526--Hyatt Regency Newport Beach
8501
6,000.00
9/26/2023
V00102--Balboa Bay Resort
8500
3,195.00
9/26/2023
V00102--Balboa Bay Resort
8499
1,000.00
9/26/2023
V00947--Hyatt Regency John Wayne Airport NB
8498
1,000.00
9/26/2023
V00102--Balboa Bay Resort
8497
1,000.00
9/26/2023
V00947--Hyatt Regency John Wayne Airport NB
8496
4,000.00
9/26/2023
V00526--Hyatt Regency Newport Beach
8495
3,000.00
9/26/2023
V00773--VEA Newport Beach
8494
3,000.00
9/26/2023
V00773--VEA Newport Beach
8493
1,015.40
9/26/2023
V00102--Balboa Bay Resort
8492
125.00
9/26/2023
V00102--Balboa Bay Resort
8491
4,800.00
9/26/2023
V00102--Balboa Bay Resort
8490
111.52
9/26/2023
V01218--UPS
9/16/23UPS TBID
58.78
9/26/2023
V01190--Transamerica Retirement Solutions
PP 9-22-23 401(
7,646.21
9/26/2023
V01632--Madden Preprint Media LLC
8489
174.17
9/26/2023
V01563--Standard Insurance Company
8488
636.05
9/26/2023
V01564--Standard Insurance RAS Executive
8487
517.13
9/26/2023
V01953--Brandon Candler Tully
Voided - 1310
-603.40
9/27/2023
V00102--Balboa Bay Resort
8528
1,000.00
9/27/2023
V00773--VEA Newport Beach
8527
2,000.00
9/27/2023
V00102--Balboa Bay Resort
8526
500.00
9/27/2023
V00767--Newport Beach Bayview Marriott
8525
352.00
9/27/2023
V01983--Group Assist, Inc.
8524
500.00
9/27/2023
V00773--VEA Newport Beach
8523
1,000.00
9/27/2023
V00773--VEA Newport Beach
8522
1,000.00
9/27/2023
V00918--Premier Displays and Exhibits
8521
64,450.06
9/27/2023
V01038--Skyward Technical Solutions
8520
3,026.70
9/28/2023
V01143--The Irvine Company, LLC
10/23 Irvine Co
17,555.00
9/28/2023
V01498--Newport Beach Country Club
1311
575.00
9/29/2023
V00245--Civitas
8532
3,900.00
9/29/2023
V00947--Hyatt Regency John Wayne Airport NB
8531
3,000.00
9/29/2023
V00526--Hyatt Regency Newport Beach
8530
1,000.00
9/29/2023
V00947--Hyatt Regency John Wayne Airport NB
8529
2,000.00
9/29/2023
V01143--The Irvine Company, LLC
1023 - Server R
134.13
9/29/2023
V00150--Blue Shield of California
10/23 BlueShiel
4,880.77
10/3/2023
V02024--Newport Pacific Law, P.C.
8535
5,000.00
10/3/2023
V01474--Renaissance Newport Beach
8534
4,000.00
10/3/2023
V01474--Renaissance Newport Beach
8533
4,000.00
10/5/2023
V01474--Renaissance Newport Beach
8547
1,000.00
10/5/2023
V00526--Hyatt Regency Newport Beach
8546
4,000.00
10/5/2023
V01474--Renaissance Newport Beach
8545
1,000.00
10/5/2023
V00526--Hyatt Regency Newport Beach
8544
2,000.00
10/5/2023
V00767--Newport Beach Bayview Marriott
8543
1,500.00
10/5/2023
V00773--VEA Newport Beach
8542
5,000.00
10/5/2023
V01474--Renaissance Newport Beach
8541
500.00
10/5/2023
V00526--Hyatt Regency Newport Beach
8540
2,000.00
10/5/2023
V00773--VEA Newport Beach
8539
7,500.00
10/5/2023
V01474--Renaissance Newport Beach
8538
736.32
10/5/2023
V00773--VEA Newport Beach
8537
125.00
10/5/2023
V00773--VEA Newport Beach
8536
367.02
10/11/2023
V01842--Sterling Administration
10/6/23 FSA NBC
389.92
10/11/2023
V01842--Sterling Administration
10/6/23FSA TBID
642.31
10/11/2023
V01190--Transamerica Retirement Solutions
PP 10-6-23 401(
7,634.00
10/12/2023
V00245--Civitas
8558
1,590.68
10/12/2023
V02111--Matthew Morgan Photography
8557
1,350.00
Company name:
Visit Newport Beach, Inc. TBID
Report name:
Check Register
Period:
July 1, 2023 to September 30, 2023
Location:
400--Visit Newport Beach, Inc.
Group Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California Bank and Tr
Account no: 5798822408
10/12/2023
V00130--Best Chauffeured Worldwide
8556
2,433.37
10/12/2023
V00773--VEA Newport Beach
8555
5,000.00
10/12/2023
V01620--Lido House, LLC
8554
1,000.00
10/12/2023
V00102--Balboa Bay Resort
8553
1,000.00
10/12/2023
V00773--VEA Newport Beach
8552
3,000.00
10/12/2023
V02079--360 DG OCLA, LLC
8551
2,912.00
10/12/2023
V01474--Renaissance Newport Beach
8550
15,000.00
10/12/2023
V00608--KMJ Corbin and Co.
8549
8,000.00
10/12/2023
V01621--AmTrust North America
8548
1,647.00
Total for CBT TBID Checking
1,052,771.74
Aft
VISIT
NEWPORT
BEACH
CALIFORNIA
September 25, 2023
KMJ Corbin & Company LLP
2855 Michelle Dr., Suite 350
Irvine, California 92606
This representation letter is provided in connection with your audits of the financial statements
of Visit Newport Beach Inc., (the "Organization") which comprise the statements of financial
position as of June 30, 2023 and 2022, and the related statements of activities, and cash flows
for the years then ended, and the related notes to the financial statements, for the purpose of
expressing an opinion on whether the financial statements are presented fairly, in all material
respects, in accordance with accounting principles generally accepted in the United States of
America ("U.S. GAAP").
Certain representations in this letter are described as being limited to matters that are material.
Items are considered material, regardless of size, if they involve an omission or misstatement
of accounting information that, in the light of surrounding circumstances, there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgement made by
a reasonable user based on the financial statements.
We confirm that to the best of our knowledge and belief, having made such inquiries as we
considered necessary for the purpose of appropriately informing ourselves as of September 25,
2023:
Financial Statements
l . We have fulfilled our responsibilities, as set out in the terms of the audit engagement
letter dated June 27, 2023, for the preparation and fair presentation of the financial
statements in accordance with U.S. GAAP.
2. We acknowledge our responsibility for 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.
3. We acknowledge our responsibility for the design, implementation, and maintenance
of internal control to prevent and detect fraud.
4. Significant assumptions used by us in making accounting estimates, including those
measured at fair value, are reasonable.
5. All related party relationships and transactions have been appropriately accounted for
and disclosed in accordance with the requirements of U.S. GAAP.
6. All events subsequent to the date of the financial statements and for which U.S. GAAP
requires adjustment or disclosure have been adjusted or disclosed.
7. There were no uncorrected misstatements.
8. The effects of all known actual or possible litigation and claims have been accounted
for and disclosed in accordance with U.S. GAAP.
9. We have complied with all contractual agreements, grants, and donor restrictions.
10. We have maintained the composition of the Organization's assets in amounts needed
to comply with all donor restrictions.
11. We have accurately presented the Organization's position regarding taxation and tax-
exempt status.
12. The basis used for the allocation of functional expenses are reasonable and appropriate.
13. We have included in the financial statements all assets and liabilities under the
Organization's control.
14. We have designed, implemented, and maintained adequate internal controls over the
receipt and recording of contributions.
15. Net assets presented in the statement of financial position are appropriately classified,
and reclassifications between net asset classes are proper.
16. The governing board's interpretations concerning whether laws place restrictions on
net appreciation of donor -restricted endowments are reasonable and have been
disclosed to you.
17. Methods and significant assumptions used by management to determine fair values,
their consistency in application, and the completeness and adequacy of fair value
information for financial statement measurement and disclosure purposes are
appropriate.
18. With regard to non -audit services performed by you, we acknowledge our
responsibility to perform and have performed the following:
a. Made all management responsibilities;
b. Assigned an individual to oversee the services who possesses suitable skill,
knowledge, or experience;
c. Evaluated the adequacy and results of the services performed;
d. Accepted responsibility for the result of the services performed; and
e. Established and maintained internal controls, including monitoring ongoing
activities.
19. The financial statements referred to above have been fairly presented in accordance
with U.S. GAAP and include all proper classifications, required supplementary
information, and note disclosure.
20. The Organization has disclosed all matters of taxation that are deemed to be reasonably
uncertain including, but not limited to, aggressive tax elections, the status or results of
IRS examinations, provisions for unpaid unrelated business income taxes and tax
benefits to the extent that the entity believes that it is "more likely than not" that its tax
positions will be sustained upon IRS examination.
21. Risks associated with concentrations, based on information known to management, that
meet all of the following criteria have been disclosed in the financial statements:
a. The concentration exists at the date of the financial statements.
b. The concentration makes the enterprise vulnerable to the risk of the near -term
severe impact.
c. It is at least reasonably possible that the events that could cause the severe
impact will occur in the near term.
22. With respect to compliance with laws and regulations affecting the Organization, we
represent the following:
o We are responsible for the Organization's compliance with the laws and
regulations applicable to it.
o We have identified and disclosed to you all laws and regulations that have a
direct and material effect on the determination of financial statement amounts.
o The Organization is a tax-exempt organization under Section 501(c)(6) of the
Internal Revenue Code and we have disclosed to you those activities that would
jeopardize the Organization's tax-exempt status.
23. We believe that all expenditures that have been deferred to future periods are
recoverable.
Information Provided
24. We have provided you with:
a. Access to all information, of which we are aware that is relevant to the
preparation and fair presentation of the financial statements, such as records,
documentation, and other matters;
b. Additional information that you have requested from us for the purpose of the
audit; and
c. Unrestricted access to persons within the Organization from whom you
determined it necessary to obtain audit evidence;
25. All transactions have been recorded in the accounting records and are reflected in the
financial statements.
26. We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud.
27. We have provided to you our analysis of the Organization's ability to continue as a
going concern, including significant conditions and events present, and if necessary,
our analysis of management's plans, and our ability to achieve those plans.
28. We have no knowledge of any fraud or suspected fraud that affects the Organization
and involves:
a. Management;
b. Employees who have significant roles in internal control; or
c. Others when the fraud could have a material effect on the financial statements.
29. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the
Organization's financial statements communicated by employees, former employees,
analysts, regulators, or others.
30. We have no knowledge of any noncompliance or suspected noncompliance with laws
and regulations whose effects should be considered when preparing financial
statements.
31. We are not aware of any pending or threatened litigation, claims, and assessments
whose effects should be considered when preparing the financial statements and we
have not consulted legal counsel concerning litigation, claims, or assessments.
32. We have disclosed to you the identity of the Organization's related parties and all the
related party relationships and transactions of which we are aware.
Other Matters
33. There have been no communications from regulatory agencies concerning
noncompliance with or deficiencies in accounting, internal control, or financial
reporting practices.
34. The Organization has no plans or intentions that may materially affect the carrying
value or classification of assets and liabilities.
35. We have disclosed to you all guarantees, whether written or oral, under which the
Organization is contingently liable.
36. We have identified and disclosed to you the laws, regulations, and provisions of
contracts that could have a direct and material effect on consolidated financial
statement amounts.
37. There are no:
a. Violations or possible violations of laws or regulations, or provisions of
contracts or grant agreements whose effects should be considered for
disclosure in the financial statements or as a basis for recording a loss
contingency;
b. Unasserted claims or assessments that our lawyer has advised are probable of
assertion and must be disclosed in accordance with FASB Accounting
Standards Codification TM (ASC) 450, Contingencies; or
c. Other liabilities or gain or loss contingencies that are required to be accrued or
disclosed by ASC-450.
38. We have complied with all aspects of contractual agreements that would have a
material effect on the financial statements in the event of noncompliance.
39. The Organization has satisfactory title to all owned assets, and there are no liens or
encumbrances on such assets nor has any asset or future revenue been pledged as
collateral, except as disclosed to you.
40. Arrangements with financial institutions involving compensating balances or other
arrangements involving restrictions on cash balances, line of credit, or similar
arrangements have been properly disclosed.
41. We have reviewed long-lived assets and certain identifiable intangibles to be held and
used for impairment whenever events or changes in circumstances have indicated that
the carrying amount of the assets might not be recoverable and have appropriately
recorded the adjustment.
42. We have no intention of terminating our 401(k) retirement savings plan or taking any
other action that could result in an effective termination or reportable event for the plan.
We are not aware of any occurrences that could result in the termination of the plan to
which we may contribute.
43. The allocation of functional expenses among program activities and general and
administrative expenses is based upon estimated usage or time spent by members of
the staff.
44. The Organization recorded a total of $2,149,913 of costs from Newport Beach &
Company, a related parry specializing in marketing and promotion services that
promote economic development with the City of Newport Beach.
45. The Organization estimates that 30% of Newport Beach & Company's salaries and
benefits for the VP of Finance and CEO and 50% Newport Beach & Company's
salaries and benefits for the Senior Accountant and the Senior Director of Media
Relations are related to the Organization.
46. As amended May 2022, the operating lease with the Irvine Company names the
Newport Beach & Company as the lessee. Half of the leased space is subleased to the
Organization. An operating lease right -of -use asset and sublease obligations balances
are recorded within the Organization's balance sheet for the subleased space.
47. We have appropriately discussed how we manage our liquidity in Note 3 to the
financial statements according to our policies and procedures.
48. There have been no cybersecurity breaches or other cyber events whose effects should
be considered for disclosure in the financial statements, as a basis for recording a loss
contingency, or otherwise considered when preparing the financial statements.
Supplementary Information in Relation to the Financial Statements as a Whole
With respect to the supplemental information accompanying the financial statements:
49. We acknowledge our responsibility for the presentation of the supplemental
information in accordance with U.S. GAAP.
50. We believe the supplemental information, including its form and content, is fairly
presented in accordance with U.S. GAAP.
51. The methods of measurement or presentation have not changed from those used in the
prior period.
NEWPORT
BEACH
& COMPANY
September 25, 2023
KMJ Corbin & Company LLP
2855 Michelle Dr., Suite 350
Irvine, California 92606
This representation letter is provided in connection with your audits of the financial statements
of Newport Beach & Company (the "Organization"), which comprise the statements of
financial position as of June 30, 2023 and 2022, and the related statements of activities and
cash flows for the years then ended, and the related notes to the financial statements, for the
purpose of expressing an opinion on whether the financial statements are presented fairly, in
all material respects, in accordance with accounting principles generally accepted in the United
States of America ("U.S. GAAP").
Certain representations in this letter are described as being limited to matters that are material.
Items are considered material, regardless of size, if they involve an omission or misstatement
of accounting information such that, in the light of surrounding circumstances, there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
We confirm that to the best of our knowledge and belief, having made such inquiries as we
considered necessary for the purpose of appropriately informing ourselves as of September 25,
2023:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement
letter dated June 27, 2023, for the preparation and fair presentation of the financial
statements in accordance with U.S. GAAP.
2. We acknowledge our responsibility for 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.
3. We acknowledge our responsibility for the design, implementation, and maintenance
of internal control to prevent and detect fraud.
4. Significant assumptions used by us in making accounting estimates, including those
measured at fair value, are reasonable.
5. All related parry relationships and transactions have been appropriately accounted for
and disclosed in accordance with the requirements of U.S. GAAP.
6. All events subsequent to the date of the financial statements and for which U.S. GAAP
requires adjustment or disclosure have been adjusted or disclosed.
7. There were no uncorrected misstatements.
8. The effects of all known actual or possible litigation and claims have been accounted
for and disclosed in accordance with U.S. GAAP.
9. We have complied with all contractual agreements, grants, and donor restrictions.
10. We have maintained an appropriate composition of the Organization's assets in
amounts needed to comply with all donor restrictions.
11. We have accurately presented the Organization's position regarding taxation and tax-
exempt status.
12. The basis used for the allocation of functional expenses are reasonable and appropriate.
13. We have included in the financial statements all assets and liabilities under the
Organization's control.
14. We have designed, implemented, and maintained adequate internal controls over the
receipt and recording of contributions.
15. Net assets presented in the statement of financial position are appropriately classified,
and reclassifications between net asset classes are proper.
16. The governing board's interpretations concerning whether laws place restrictions on
net appreciation of donor -restricted endowments are reasonable and have been
disclosed to you.
17. Methods and significant assumptions used by management to determine fair values,
their consistency in application, and the completeness and adequacy of fair value
information for financial statement measurement and disclosure purposes are
appropriate.
18. With respect to non -audit services performed by you, we acknowledge our
responsibility to perform and have performed the following:
a. Made all management decisions and performed all management functions;
b. Assigned a competent individual to oversee the services;
c. Evaluated the adequacy and results of the services performed;
d. Evaluated and accepted responsibility for the result of the service performed;
and
e. Established and maintained internal controls, including monitoring ongoing
activities.
19. The financial statements referred to above have been fairly presented in accordance
with U.S. GAAP and include all proper classifications, required supplementary
information, and note disclosure.
20. The Organization has disclosed all matters of taxation that are deemed to be reasonably
uncertain including, but not limited to, aggressive tax elections, the status or results of
IRS examinations, provisions for unpaid unrelated business income taxes and tax
benefits to the extent that the entity believes that it is "more likely than not" that its tax
positions will be sustained upon IRS examination.
21. Risks associated with concentrations, based on information known to management, that
meet all of the following criteria have been disclosed in the financial statements:
a. The concentration exists at the date of the financial statements.
b. The concentration makes the enterprise vulnerable to the risk of the near -term
severe impact.
c. It is at least reasonably possible that the events that could cause severe impact
will occur in the near term.
22. With respect to compliance with laws and regulations affecting the Organization, we
represent the following:
o We are responsible for the Organization's compliance with the laws and
regulations applicable to it.
o We have identified and disclosed to you all laws and regulations that have a
direct and material effect on the determination of financial statement amounts.
o The Organization is a tax-exempt organization under Section 501(c)(6) of the
Internal Revenue Code and we have disclosed to you those activities that would
jeopardize the Organization's tax-exempt status.
23. We believe that all expenditures that have been deferred to future periods are
recoverable.
Information Provided
24. We have provided you with:
a. Access to all information, of which we are aware that is relevant to the
preparation and fair presentation of the financial statements, such as records,
documentation, and other matters;
b. Additional information that you have requested from us for the purpose of the
audit; and
c. Unrestricted access to persons within the Organization from whom you
determined it necessary to obtain audit evidence.
25. All transactions have been recorded in the accounting records and are reflected in the
financial statements.
26. We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud.
27. We have provided to you our analysis of the Organization's ability to continue as a
going concern, including significant conditions and events present, and if necessary,
our analysis of management's plans, and our ability to achieve those plans.
28. We have no knowledge of any fraud or suspected fraud that affects the Organization
and involves:
a. Management;
b. Employees who have significant roles in internal control; or
c. Others when the fraud could have a material effect on the financial statements.
29. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the
Organization's financial statements communicated by employees, former employees,
analysts, regulators, or others.
30. We have no knowledge of any noncompliance or suspected noncompliance with laws,
regulations, contracts, and grant agreements whose effects should be considered when
preparing financial statements.
31. We are not aware of any pending or threatened litigation, claims, and assessments
whose effects should be considered when preparing the financial statements and we
have not consulted legal counsel concerning litigation, claims, or assessments.
32. We have disclosed to you the identity of the Organization's related parties and all the
related party relationships and transactions of which we are aware.
Other Matters
33. There have been no communications from regulatory agencies concerning
noncompliance with or deficiencies in accounting, internal control, or financial
reporting practices.
34. The Organization has no plans or intentions that may materially affect the carrying
value or classification of assets and liabilities.
35. We have disclosed to you all guarantees, whether written or oral, under which the
Organization is contingently liable.
36. We have identified and disclosed to you the laws, regulations, and provisions of
contracts that could have a direct and material effect on consolidated financial
statement amounts.
37. There are no:
a. Violations or possible violations of laws or regulations, or provisions of
contracts or grant agreements whose effects should be considered for
disclosure in the financial statements or as a basis for recording a loss
contingency;
b. Unasserted claims or assessments that our lawyer has advised are probable of
assertion and must be disclosed in accordance with FASB Accounting
Standards CodificationTM (ASC) 450, Contingencies; or
c. Other liabilities or gain or loss contingencies that are required to be accrued or
disclosed by ASC-450.
38. We have complied with all aspects of contractual agreements that would have a
material effect on the financial statements in the event of non-compliance.
39. The Organization has satisfactory title to all owned assets, and there are no liens or
encumbrances on such assets, nor has any asset or future revenue been pledged as
collateral, except as disclosed to you.
40. Arrangements with financial institutions involving compensating balances or other
arrangements involving restrictions on cash balances, line of credit, or similar
arrangements have been properly disclosed.
41. We have reviewed long-lived assets and certain identifiable intangibles to be held and
used for impairment whenever events or changes in circumstances have indicated that
the carrying amount of the assets might not be recoverable and have appropriately
recorded the adjustment.
42. We have no intention of terminating our 401(k)-retirement savings plan or taking any
other action that could result in an effective termination or reportable event for the plan.
We are not aware of any occurrences that could result in the termination of the plan to
which we may contribute.
43. The allocation of functional expenses among program activities and general and
administrative expenses is based upon estimated usage or time spent by members of
the staff.
44. The Organization received a total of $2,149,913 from Visit Newport Beach Inc., a
related parry who initiates, sponsors, promotes, and carries out plans, polices and
activities to attract conferences and visitors to the City of Newport Beach.
45. The Organization estimates that 30% of salaries and benefits for the VP of Finance and
CEO and 50% of the salaries and benefits for the Senior Accountant and the Senior
Director of Media Relations are related to the Visit Newport Beach Inc.
46. As amended May 2022, the operating lease with the Irvine Company names the
Organization as the lessee. Half of the leased space is subleased to Visit Newport Beach
Inc. The full operating lease right -of -use asset and operating lease liability balances are
recorded within the Organization's balance sheet.
47. We have appropriately discussed how we manage our liquidity in Note 3 to the
financial statements according to our policies and procedures.
48. There have been no cybersecurity breaches or other cyber events whose effects should
be considered for disclosure in the financial statements as a basis for recording a loss
contingency or otherwise considered when preparing the financial statements.
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
with
INDEPENDENT AUDITORS' REPORT THEREON
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-17
KJ� �j J I Corbin &
lvl Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Newport Beach & Company
Opinion
We have audited the accompanying financial statements of Newport Beach & Company (a non-
profit organization) (the "Organization"), which comprise the statements of financial position as
of June 30, 2023 and 2022, and the related statements of activities and cash flows for the years
then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Organization as of June 30, 2023 and 2022, and the changes in its net
assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United
States of America ("GAAS"). Our responsibilities under those standards are further described in
the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the Organization and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audits. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Related -Party Transactions
As discussed in Note 9 to the financial statements, the Organization has significant transactions
with a related non-profit organization. Our opinion is not modified with respect to this matter.
Change in Accounting Principle
As discussed in Note 2 to the financial statements, as of July 1, 2022, the Organization adopted
new accounting guidance related to leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
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.
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 kmipartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the
Organization's ability to continue as a going concern for one year after the date that the financial
statements are issued.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect
a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GARS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 Organization's internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Organization's ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
"J- t �
KMJ Corbin & Company
JLLP
Irvine, California
September 25, 2023
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2023
2022
ASSETS
Current assets:
Cash
$ 47,669 $
140,707
Accounts receivable
11,259
16,381
Related -party receivables, net
199,937
2,441
Prepaid expenses and other current assets
80,238
107,575
Total current assets
339,103
267,104
Operating lease right -of -use assets, net
2,327,598
-
Deferred sublease income
46,352
-
Property and equipment, net
131,873
9,185
Other
50,000
75,000
$ 2,894,926 $
351.289
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable
$ 13,535
$ 12,472
Accrued expenses
180,692
58,664
Accrued payroll and related expenses
129,576
139,009
Current portion of operating lease liabilities
303,454
-
Current portion of deferred compensation
25,000
25,000
Total current liabilities
652,257
235,145
Operating lease liabilities, net of current portion
2,116,848
-
Deferred compensation, net of current portion
50,000
75,000
Total liabilities
2,819,105
310,145
Commitments and contingencies
Net assets without donor restrictions 75,821 41,144
$ 2,894,926 $ 351.289
See accompanying notes to financial statements
3
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2023 2022
Support and revenues:
Service fees from related party $ 2,149,913 $ 1,806,743
Community marketing income 164,067 153,765
Paycheck protection program grant - 109,450
Total support and revenues 2,313,980 2,069,958
Expenses:
Marketing 141,021 168,354
Salaries and benefits 1,585,763 1,172,769
Other 531,670 647,001
Depreciation 20,849 20,271
Total expenses 2,279,303 2,008,395
Increase in net assets without donor restrictions 34,677 61,563
Net assets without donor restrictions, beginning of year 41,144 (20,419)
Net assets without donor restrictions, end of year $ 75,821 $ 41.144
See accompanying notes to financial statements
4
Cash flows from operating activities:
Increase in net assets without donor restrictions
Adjustments to reconcile increase in net assets without
donor restrictions to net cash provided by (used in)
operating activities:
Depreciation
Amortization of operating lease right -of -use assets
Forgiveness on PPP loan
Loss on disposals of property and equipment
Changes in operating assets and liabilities:
Accounts receivable
Related -party receivables/payables, net
Prepaid expenses and other
Deferred sublease income
Accounts payable
Accrued expenses
Accrued payroll and related expenses
Deferred compensation
Deferred rent
Operating lease liabilities
Net cash provided by (used in) operating activities
Cash flows used in investing activities:
Purchases of property and equipment
Net change in cash
Cash at beginning of year
Cash at end of year
Supplemental disclosure of non -cash transactions:
Operating lease right -of -use assets and operating lease
liabilities recorded upon adoption of ASC 842
Operating lease right -of -use assets obtained in
exchange for operating lease liabilities
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2023
$ 34,677 $
20,849
358,879
417
5,122
(197,496)
52,337
(46,352)
1,063
139,328
(9,433)
(25,000)
(283,475)
50,916
(143,954)
(93,038)
140,707
$ 47,669
$ 140,073
$ 2,563,704
2022
61,563
20,271
(109,450)
14,038
(3,490)
16,185
(105,926)
6,423
(74,022)
15,242
100,000
(14,229)
(73,395)
(5,352)
(78,747)
219,454
$ 140.707
See accompanying notes to financial statements
5
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 1— ORGANIZATION
Nature of Operations
Newport Beach & Company (the "Organization") is a non-profit organization formed under the
laws of the State of California in 2013. The Organization specializes in marketing and promotion
services related to enhancing the economic development for the City of Newport Beach (the
"City"). The Organization currently has an agreement with the City to manage its public access
television channel. Such services include production, administrative, and sponsorship services.
This agreement, as amended, expires on December 31, 2023. By embracing a variety of
neighborhoods, businesses and individual unique voices into a complementary story, the
Organization seeks to strengthen all of its partners, drive new revenue to the City and enhance the
City's overall economic vibrancy.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions — Net assets that are not subject to donor -imposed stipulations. These
assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions - Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
to
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
As of and for the years ended June 30, 2023 and 2022, the Organization had no net assets with donor
restrictions.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the collectability of receivables, recoverability of long-
lived assets, the allocation of expenses to program activities and general and administrative, and
lease assumptions, including discount rates and lease terms. Actual results may differ from those
estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation ("FDIC") up to $250,000 per institution. At June 30, 2023, the Organization had no
uninsured balances. The Organization periodically reviews the quality of the financial institutions
it has deposits with to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. At June 30, 2023 and 2022, the Organization considers its accounts
receivable to be fully collectible and accordingly did not record an allowance for doubtful
accounts. As of June 30, 2023 and 2022, one customer accounted for approximately 86% and two
customers accounted for 98%, respectively, of the Organization's total accounts receivable
balance.
VA
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Deferred Compensation
Deferred compensation represents a commitment to make annual $25,000 annuity payments
through 2026 to a member of the Organization's management. As of June 30, 2023, $75,000 was
due. Payments due within one year have been classified under prepaid expenses and other current
assets and current liabilities; all other amounts have been classified as non -current assets and non-
current liabilities.
Leases
At the inception of a contract, the Organization determines if the arrangement is, or contains, a
lease. Operating lease right -of -use ("ROU") assets represent the Organization's right to use an
underlying asset for the lease term, and lease liabilities represent its obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized at
commencement date based on the present value of the future minimum lease payments over the
lease term calculated using the risk -free rate commensurate with the term of the ROU asset.
ROU assets also include any lease payments made at or before lease commencement and exclude
any lease incentives received. The lease terms may include options to extend the lease when it is
reasonably certain that the Organization will exercise that option. Leases with a term of 12 months
or less are not recognized in the balance sheet. Rent expense is recognized on a straight-line basis
over the lease term.
The Organization accounts for lease and non -lease components as separate lease components for
all its leases.
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2023 and 2022, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
During the years ended June 30, 2023 and 2022, the Organization did not have significant
contributed materials and services.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2023 and 2022,
the Organization had no unrelated business income. The Organization annually evaluates tax
positions as part of the preparation of its exempt tax return. This process includes an analysis of
whether tax positions the Organization takes with regard to a particular item of income or
deduction would meet the definition of an uncertain tax position under current accounting
guidance. The Organization believes its tax positions are appropriate based on current facts and
circumstances. The Organization's policy is to recognize interest accrued related to unrecognized
tax benefits in interest expense and penalties in operating expenses. At June 30, 2023 and 2022,
the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to income tax examinations by tax authorities for years
before 2019.
0
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting
Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASC 842"), which requires the lease
rights and obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. Most prominent among
the changes in the new standard is the recognition of right -of -use assets and lease liabilities by
lessees for those leases classified as operating leases. Under the new standard, disclosures are
required to meet the objective of enabling users of financial statements to assess the amount, timing
and uncertainty of cash flows arising from leases.
The Organization adopted this standard effective July 1, 2022, using the modified retrospective
approach, which allowed the Organization to make any necessary transition adjustments at July 1,
2022. The Organization elected the optional transition method, which allowed the Organization to
continue to use disclosures required by the prior standard during fiscal year 2023, the year of
adoption.
The adoption of the new standard on July 1, 2022 had a material impact on the Organization's
statement of financial position, which resulted in the recognition of right -of -use assets of $122,773,
operating lease liabilities of $140,073 and a reduction in deferred rent liabilities of $17,300.
However, the adoption of the new standard did not materially impact the Organization's results of
operations and cash flows. Also, the adoption of ASC 842 did not have an impact on the
Organization's beginning net assets balance.
10
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
ASC 842 provides several optional practical expedients in transition to make the transition more
efficient and cost-effective for companies. For leases that commenced prior to July 1, 2022, the
Organization elected (i) the "package of practical expedients," which permits it not to reassess
under the new standard its prior conclusions about lease identification, lease classification, and
initial direct costs, and (ii) the use -of -hindsight in determining the lease term and in assessing
impairment of right -of -use assets.
In addition, ASC 842 provides practical expedients for an entity's ongoing accounting that the
Organization has elected short-term lease recognition exemption for all leases that qualify.
See Note 7 for additional information regarding the Organization's leases.
Subsequent Events
The Organization has evaluated subsequent events through September 25, 2023, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2023, the Organization has $58,928 of financial assets available within one year of the
statement of financial position date to meet cash needs for general expenditures consisting of cash
of $47,669 and accounts receivable of $11,259. None of the financial assets are subject to donor
or other contractual restrictions that make them unavailable for general expenditures within one
year of the statement of financial position. The Organization has a policy to structure its financial
assets to be available as its general expenditures, liabilities, and other obligations come due.
Funding for the Organization is dependent on funding received from a related party (see Note 9)
and revenue generated through marketing efforts. As a result, the Organization closely monitors
the monthly projected and collected revenue to determine if any changes need to be made to
budgeted annual expenditures.
11
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 4 - PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
Leasehold improvements
Computer equipment
Office furniture and fixtures
2023 2022
$ 36,230 $ 7,614
120,780 84,979
103,346 26,351
260,356 118,944
Less accumulated depreciation and amortization (128,483) (109,759)
$ 131,873 $ 9.185
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2023 and 2022 are as follows:
2023
Program General and 2022
Activities Administrative Total Total
Salaries and benefits:
Salaries $ 930,757 $ 325,452 $ 1,256,209 $ 907,856
Payroll taxes and employee benefits 225,530 104,024 329,554 264,913
Total salaries and benefits 1,156,287 429,476 1,585,763 1,172,769
Other expenses:
Marketing
140,565
456
141,021
168,354
Office lease
202,651
67,550
270,201
416,501
Repairs and maintenance
7,023
43,481
50,504
40,887
Insurance
-
3,564
3,564
3,207
Office supplies
4,853
12,025
16,878
10,122
Equipment and equipment rental
28,349
38,801
67,150
44,636
Postage and fees
18,958
1,862
20,820
20,662
Meeting and education
13,608
28,046
41,654
35,282
Professional fees and services
-
39,901
39,901
35,967
Depreciation
-
20,849
20,849
20,271
Loss on disposals of property and equipment
-
417
417
14,038
Travel and related
19,794
787
20,581
25,699
Total functional expenses $
1.592.088 $
687.213
$ 2.279.301
$ 2.008.395
12
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 5 — STATEMENT OF FUNCTIONAL EXPENSES, continued
The Organization incurred expenses related to program activities totaling approximately
$1,421,000 for the year ended June 30, 2022.
NOTE 6 — PAYCHECK PROTECTION PROGRAM GRANT/LOAN
In January 2021, the Organization entered into an unsecured promissory note for a loan (the
"Loan") in the principal amount of $336,997 and received cash proceeds of the same amount,
pursuant to the Paycheck Protection Program (the "PPP"), which is administered by the U.S. Small
Business Administration (the "SBA"). Under the terms of the Loan, interest accrued on the
outstanding principal at the rate of 1.0% per annum. The term of the Loan was five years, unless
sooner required in connection with an event of default under the Loan. To the extent the Loan
amount was not fully forgiven by the SBA, the Organization was obligated to make equal monthly
payments of principal and interest beginning on the earlier of: (1) the date the SBA sends the loan
forgiveness amount to the lender or (2) ten months after the covered 24-week period, until the
maturity date.
The PPP provided a mechanism for forgiveness of up to the full amount borrowed. During the year
ended June 30, 2021, the Organization had used $227,527 of the proceeds for purposes consistent
with the PPP and believed that its use of this portion of the loan proceeds met the conditions for
forgiveness. Since the Organization used $227,527 of the proceeds from the PPP Loan for such
qualifying expenses before June 30, 2021, the Organization recorded this amount of the PPP Loan
proceeds as a conditional cost -reimbursed government grant in the accompanying statement of
activities for the year ended June 30, 2021 pursuant to relevant technical accounting guidance.
During the year ended June 30, 2022, the Organization received forgiveness from the SBA for the
full loan amount. Upon such forgiveness, the Organization recorded the remaining PPP loan
balance of $109,450 as a conditional cost -reimbursed government grant in the accompanying
statement of activities for the year ended June 30, 2022 pursuant to relevant technical accounting
guidance.
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization has operating leases for office space and office equipment rentals.
The Organization was obligated under a lease for its office space, which was accounted for as an
operating lease. The lease expired in September 2022.
13
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
In May 2022, the Organization entered into a lease amendment for a smaller lease space, which
was accounted for as a separate lease. Under the amended lease, rent is payable at approximately
$33,000 to $41,000 per month and expires in September 2029. The lease contains a five-year
extension option at the end of the lease term. In addition, the Organization has a lease for office
equipment with monthly payments of approximately $500 through January 2026. As the new space
was not available to be used until the beginning of 2023 and the office equipment lease commenced
in November 2022, these leases resulted in the Organization recording operating lease right -of -use
assets and corresponding operating lease liabilities of $2,563,704 during the year ended June 30,
2023.
The operating leases in place do not contain information to determine the rate implicit in the leases.
As such, the Organization utilized the risk -free discount rate based on the assumed remaining lease
term for the leases to calculate the present value of the remaining lease payments. At June 30,
2023, the weighted -average discount rate and the weighted average remaining lease term for the
operating leases held by the Organization was 5% and 6.2 years, respectively.
During the year ended June 30, 2023, cash paid for amounts included for the operating lease
liabilities totaled $231,253, which is net of payments of $149,878 received from the related -party
sublessee (see below).
The components of lease cost for the year ended June 30, 2023 were as follows:
Operating lease cost $ 456,534
Variable lease cost, including property taxes, insurance
and maintenance 11,406
Sublease income (see below) (195,922)
Total lease cost, net $ 272,018
Total lease cost was included in other expenses in the accompanying statement of activities.
14
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Future minimum lease payments under non -cancelable operating leases at June 30, 2023 are
approximately as follows:
Years Ending
June 30,
Total
2024
$ 416,000
2025
431,000
2026
443,000
2027
455,000
2028
470,000
Thereafter
611,000
Total future minimum lease payments
2,826,000
Less: imputed interest payments
(405,698)
Total operating lease liabilities
2,420,302
Less: current portion
(303,454)
$ 21,168,48
At June 30, 2022, future minimum payments due on the Organization's non -cancelable facility
lease commitment in excess of one year are as follows:
Years Ending
June 30,
2023
$ 378,000
2024
410,000
2025
426,000
2026
440,000
2027
456,000
Thereafter
1,080,000
$ 3.190.000
15
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Sublease Agreements
In May 2022, the Organization entered into an operating sublease agreement with Visit Newport
Beach Inc. ("VNB"), a related party, for half of the smaller leased space. The Organization also
has a deemed sublease with VNB for office equipment and has recorded deferred sublease income
of $46,352 as of June 30, 2023, included in the accompanying statement of financial position.
Future minimum sublease payments to be collected under non -cancelable operating subleases at
June 30, 2023 are approximately as follows:
Years Ending
June 30,
2024
2025
2026
2027
2028
Thereafter
Total future minimum sublease payments
Guarantees and Indemnities
Total
208,000
215,000
222,000
228,000
235,000
305,000
$ 1.413.000
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. In connection with its facility lease, the Organization has
indemnified its lessor for certain claims arising from the use of the facilities. The duration of the
guarantees and indemnities varies, and is generally tied to the life of the agreement. These
guarantees and indemnities do not provide for any limitation of the maximum potential future
payments the Organization could be obligated to make. Historically, the Organization has not
been obligated nor incurred any payments for these obligations and, therefore, no liabilities have
been recorded for these indemnities and guarantees in the accompanying statements of financial
position.
16
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan (the "Plan") covering all eligible employees. The
Plan provides for voluntary employer contributions. The total Plan expense during the years ended
June 30, 2023 and 2022 was approximately $70,000 and $63,000, respectively, which is recorded
in salaries and benefits expenses in the accompanying statements of activities.
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2023 and 2022, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, VNB, initiates, sponsors, promotes
and carries out plans, policies and activities to attract conferences and visitors to the City. VNB
was the driving force behind the formation of the Organization. Pursuant to an Agreement for
Services ("Agreement") dated April 1, 2013, the Organization was appointed by VNB as an
exclusive provider of services that VNB requires to carry out its mission and obligations to the
City. In consideration for these services, VNB agreed to pay monthly fees totaling $108,000 for
the years ended June 30, 2023 and 2022. VNB has also agreed to reimburse the Organization for
all reasonable expenses incurred by it in carrying out its duties to VNB, including rent and related
facility costs, payroll and related benefits, and other direct marketing costs. For the years ended
June 30, 2023 and 2022, the Organization billed $2,041,913 and $1,698,743, respectively, to VNB
for these fees and costs, which are recorded as service fees from related party in the accompanying
statements of activities. The Agreement, as amended, expires on June 30, 2024.
In addition, payroll and related expenses from shared employees employed under the Organization
are allocated to VNB. During the years ended June 30, 2023 and 2022, payroll and related expenses
of $272,160 and $184,288, respectively, were allocated to VNB.
As of June 30, 2023 and 2022, the Organization has net related -party receivables from VNB of
$199,937 and $2,441, respectively, in the accompanying statements of financial position. These
amounts do not bear interest, are not collateralized and have no stated repayment terms.
17
KMJ1Corbin &
Company
Business Advisors Tax and Audit
September 25, 2023
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Newport Beach & Company (the "Organization") as of
and for the year ended June 30, 2023, and have issued our report thereon dated September 25, 2023.
Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated June 27, 2023 our responsibility, as described by
professional standards, is to form and express an opinion about whether the financial statements that
have been prepared by management with your oversight are presented fairly, in all material respects,
in accordance with accounting principles generally accepted in the United States of America. Our
audit of the financial statements does not relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over
financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal
control over financial reporting. Accordingly, as part of our audit, we considered the internal control
of the Organization solely for the purpose of determining our audit procedures and not to provide any
assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated
to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Newport Beach & Company
September 25, 2023
Page 2
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the Organization's
management has been responsible for (a) making all management decisions and performing all
management functions; (b) assigning a competent individual to oversee the services; (c) evaluating
the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of
the services performed; and (e) establishing and maintaining internal controls, including monitoring
ongoing activities.
Audit Focus Areas Identified
We have identified the following audit focus areas:
• Management override of internal controls is a pervasive risk that could affect many audit
areas and could affect amounts reported in the financial statements.
• Improper revenue recognition due to the inherent risk in revenue recognition.
• Adoption of the new leases standard due to the complex calculations and judgments related to
the recording of assets and liabilities under the new standard.
• Related -party transactions due to the volume of related -party transactions, in addition to the
disclosure requirements related to such transactions.
• Support for expenses due to the volume of expenses and the need to verify existence,
accuracy and propriety of expenses.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of
the significant accounting policies adopted by the Organization is included in Note 2 to the financial
statements. Other than the adoption of ASU No. 2016-02, Leases (Topic 842), there have been no
initial selection of accounting policies and no changes in significant accounting policies or their
application during the year ended June 30, 2023. No matters have come to our attention that would
require us, under professional standards, to inform you about (1) the methods used to account for
significant unusual transactions and (2) the effect of significant accounting policies in controversial
or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates and Related Disclosures
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly from
management's current judgments. Significant estimates made by the Organization's management
Newport Beach & Company
September 25, 2023
Page 3
include, but are not limited to, the collectability of receivables, recoverability of long-lived assets, the
allocation of expenses to program activities and general and administrative, and lease assumptions,
including discount rates and lease terms.
• Management's estimate of the collectability of accounts receivables is based on assessing the
potential uncollectible receivables outstanding using the specific identification method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual disposition
of the long-lived assets to their carrying values.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose and nature of the expenditures incurred
during the year.
• Management's estimate of the discount rate on leases is based on the risk -free rate
commensurate with the term of the leased asset. The lease terms include options to extend the
lease when it is reasonably certain that the Company will exercise that option.
We evaluated the key factors and assumptions used to develop the estimates and determined that they
are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the
Organizations financial statements relate to related -party transactions.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you
significant unusual transactions identified during our audit. There were no significant unusual
transactions identified as a result of our audit procedures that were brought to the attention of
management.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
Newport Beach & Company
September 25, 2023
Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and
likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require us
to also communicate the effect of uncorrected misstatements related to prior periods on the relevant
classes of transactions, account balances or disclosures, and the financial statements as a whole.
There were no uncorrected misstatements during the year ended June 30, 2023.
In addition, professional standards require us to communicate to you all corrected misstatements that
were brought to the attention of management as a result of our audit procedures. There were no
corrected misstatements that we identified as a result of our audit procedures that were brought to the
attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the Organization's financial statements or the auditors'
report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor's Report
For purposes of this letter, professional standards require that we communicate any circumstances
that affect the form and content of our auditors' report. We have not identified or obtained
information that affect the form and content of the Auditors' Report.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
attached letter dated September 25, 2023.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards,
significant events or transactions that occurred during the year, operating conditions affecting the
Organization, and operating plans and strategies that may affect the risks of material misstatement.
None of the matters discussed resulted in a condition to our retention as the Organization's auditors.
Newport Beach & Company
September 25, 2023
Page 5
This report is intended solely for the information and use of the Board of Directors and management
of the Organization, and is not intended to be and should not be used by anyone other than these
specified parties.
Very truly yours,
v—M j- Cow,1 '0" LLP
KMJ Corbin & Company LLP
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
September 25, 2023
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Newport Beach & Company (the
"Organization") as of and for the year ended June 30, 2023, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting ("internal control") as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis. A reasonable possibility exists when the
likelihood of an event occurring is either reasonably possible or probable as defined as follows:
• Reasonably possible. The chance of the future event or events occurring is more than remote
but less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses.
Given these limitations, during our audit we did not identify any deficiencies in internal controls that
we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
kMT Ck ,wt (CN" LLP
KMJ Corbin & Company LLP
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 knnjpartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2023
with
INDEPENDENT AUDITORS' REPORT THEREON
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management Statement
Regarding Compliance With Certain Provisions of the Agreement Between the City of Newport
Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing Services, that
Visit Newport Beach Inc. (the "Organization") complied with the provisions in Section 4 of the
Agreement Between the City of Newport Beach and Visit Newport Beach Inc. for Tourism
Promotion, Branding, and Marketing Services (the "Agreement") regarding the attached 2023
Expenditures Report, summarizing the expenditures of funds received pursuant to the Agreement
during the period July 1, 2022 to June 30, 2023. The Organization's management is responsible for
its assertion. Our responsibility is to express an opinion on management's assertion about the
Organization's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion about
compliance with the specified requirements is fairly stated, in all material respects. An examination
involves performing procedures to obtain evidence about management's assertion. The nature,
timing, and extent of the procedures selected depend on our judgment, including an assessment of the
risks of material misstatement of management's assertion, whether due to fraud or error. We believe
that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our
opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination on the Organization's compliance with the
specified requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the provisions
of Section 4 of the Agreement regarding the attached 2023 Expenditures Report for the year ended
June 30, 2023 is fairly stated, in all material respects.
This report is intended solely for the information and use of Visit Newport Beach, Inc. and the City
of Newport Beach and is not intended to be and should not be used by anyone other than these
specified parties.
V-MT CA ,,v t 1-0" U-P
KMJ Corbin & Company LLP
Irvine, California
September 25, 2023
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
VISIT
E I' P RT
BEACH
CALIFORNIA
Management Statement Regarding Compiiance With Certain provisions of the AgmeMent Between
the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and
Marketing Services
e, as members of management of Visit Newport. Beach Inc. {the "Organization"), are responsible for
complying with the provisions of Section 4 of the Agreement Between the City of Newport Beach and Visit
Newport Reach Inc, (collectively, the "Parties' for Tourism Promotion, Branding, and Marketing Services
(tyre "Agreement") in that funds received by the Organization pursuant to this Agreement were expended in
accordance with this Agreement. We are responsible for establisbing and maintaining effective internal
controls over compI iance with the provisions of Section 4 of the Agreement. We have performed an evaluation
of the Organization's compliance with the provisions of Section 4 of the Agreement regarding funds expended
during the year ended June 30, 2023, as summarized in the attached 2023 Expenditures Report. Based on this
evaluation, we assert that the Organization was in compliance with the provisions of Section 4 of the
Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise a program to
market and promote the Newport Beach brand and to promote tourism in, and serve the needs of, visitors to
Newport Beach as well as increase the amount of TOT collected through their promotional. activities
`Services°). Subject to the foregoing sentence, the Services shad, at a minimum, include the following: (a)
the maintenance of suitable office space and the employment of competent personnel to cagy out the
promotional, branding and marketing duties; (b) the preparation of brochures, publications, guides, on-line
promotions, social network efforts, and other marketing materials and information that inform prospective
tourists and visitors of the recreational activities, cultural assets, shopping and dining opportunities, night-time
stay opportunities, and natural beauty of Newport Beach; (c) the dissemination of information described in dais
section by way of the mcdia, direct mail, handouts, social networking, websites, smart phone applications, or
other means of distribution; and d) the development and implementation of specific marketing programs
designed to increase awareness of the Newport Beach brand and to increaw business and visitor trade in
Newport Beach; and {e} any additional Services when proposed by the City which are consistent with the
promotion of tourism and the Newport Beach brand which are mutually agreeable and acceptable to the
Parties,"
l3�
133
V
VISIT NEWPORT BEACH INC.
2023 Expenditures Report
July 1, 2022 -
June 30, 2023
2023 Expenses
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
$ 341
64125 - Computer Software (non-deprec)
9,040
64130 - Voice and Data - Office
75
64145 - Shipping Charges
546
64150 - Bank Fees
1,143
64160 - Membership Dues
48,730
64170 - Team Meetings
3,570
Total Operating Expenses
63,445
Insurance
63100 - General Liability Insurance
1,795
63300 - Board of Directors Insurance
1,769
Total Insurance
3,564
Professional Fees
64203 - Recruiting Fees
35
64207 - Online Content
37,175
64201- Audit Fees
6,000
64202 - Tax Preparation Fees
2,000
64204 - Legal Fees
5,500
Total Professional Fees
50,710
Travel Expenses
65100 - Airfare
2,015
65200 - Accommodations
1,124
65300 - Meals
307
65400 - Transportation Costs
317
65405 - Mileage ($0.655/mile 2023)
2
65500 - Other Travel Costs
67
Total Travel Expenses
3,832
Total General and Administrative
121,551
Advertising Expenses
66101 - Advertising - Purchased
2,045,203
66102 - Advertising - Local Events
5,000
66121- Promotional Gift Cards
6,158
66123 - Promotional Client Gifts
2,125
66202 - Ad/Creative Production
90,034
66203 - Creative Design/Development
95,042
66205 - Photography/Video Shoots/Production
195,675
66212 - Community Sponsorships
150,000
67101 - Research
124,133
67102 - Christmas Boat Parade
162,557
Total Advertising Expenses
2,875,927
Marketing Expenses
Community Relations
67103 - Community Partner Events
125,269
67105 - Awards
19,450
67107 - Promotional Items
1,136
Total Community Relations
145,855
Marketing Collateral
67301 - Inspiration Guide
169,000
67309 - Business Plan
4,940
67312 - Collateral Distribution
5,451
Total Marketing Collateral
179,391
Digital Marketing
67501 - Social Media
92,300
67502 - Website Maintenance
161,608
67503 - SEO/SEM
101,972
67504- Content Creators/Influencers
49,462
67511 - Digital Lifestyle Channel Production
28,268
66211 - CRM Maintenance & Platform Subscriptions
16,263
Total Digital Marketing
449,873
Communications/Public Relations
67601 - PR Agency/Tracking/Copywriting
13,119
67602 - Media FAM Tours
70,240
67605 - Media Opportunities
231,614
67607 - Media Relations
9,265
67608 - Media Missions
5,025
VISIT NEWPORT BEACH INC.
2023 Expenditures Report
July 1, 2022 -
June 30, 2023
Total Communications/Public Relations
329,264
Total Marketing Expenses
1,104,382
International Marketing Initiatives
67401 - International Brand Activations
125,240
67403 - International Promotions
416
67405 - International Airfare
56,573
67406 - International Accommodations
12,578
67407 - International Meals
418
67408 - International Transportation Costs
3,300
67409 - International Other Travel Costs
2,911
67410 - International Business Meals/Entertainment
3,701
67411 - International Promotional Items
3,425
67412 - International Brand Events
442,618
67413 - International Sales Missions
4,332
Total International Marketing Initiatives
655,512
NB&Company Fees
68001- NB&Co Fees
2,041,913
B Total NB&Company Fees
2,041,913
Total Expenses
6,799,285
Other Expenditures:
Fixed asset additions capitalized
5,561
Website development costs capitalized
41,749
Change in other prepaid expenses and current
32,033
liabilities, net
79,343
$ 6,878,628
NOTES:
A Included in this account are expenditures for or contributions to special events and not -for -profit
organizations in Newport Beach as follows:
Vendor Event Amount
City of Newport Beach Program Sponsorships 150,000
$ 150,000
B Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries/Benefits $ 1,316,087
Marketing 130,831
General and Administrative and Overheai 594.995
6,U41,91S
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION
For The Years Ended June 30, 2023 and 2022
with
INDEPENDENT AUDITORS' REPORT THEREON
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-19
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source ................................... 20
Schedule 11— Statement of Activities by Funding Source ............................................... 21
KJ� �j J I Corbin &
lvl Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
Opinion
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-profit
organization) (the "Organization"), which comprise the statements of financial position as of June 30, 2023
and 2022, and the related statements of activities and cash flows for the years then ended, and the related
notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Organization as of June 30, 2023 and 2022, and the changes in its net assets and its cash
flows for the years then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America ("GAAS"). Our responsibilities under those standards are further described in the Auditors'
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Organization and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Related -Party Transactions
As discussed in Note 9 to the financial statements, the Organization has significant transactions with a
related non-profit organization. Our opinion is not modified with respect to this matter.
Change in Accounting Principle
As discussed in Note 2 to the financial statements, as of July 1, 2022, the Organization adopted new
accounting guidance related to leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Organization's ability to continue
as a going concern for one year after the date that the financial statements are issued.
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 kmipartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement
when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit 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 Organization's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Organization's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control —related matters
that we identified during the audit.
Supplemental Information
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole.
The supplemental information contained in Schedules I and II on pages 20-21 is presented for purposes of
additional analysis and is not a required part of the 2023 financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the 2023 financial statements. The information has been subjected to the
auditing procedures applied in the audit of the 2023 financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the 2023 financial statements or the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the 2023 financial statements as
a whole.
kM j' Cam, t lc"Ln LP
KMJ Corbin & Company LLP
Irvine, California
September 25, 2023
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2023 2022
ASSETS
Current assets:
Cash and cash equivalents $ 2,601,955 $ 4,792,516
Short-term investments 5,313,443 2,952,978
Accounts receivable 48,279 -
Prepaid expenses and other current assets 601,564 425,427
Total current assets 8,565,241 8,170,921
Operating sublease right -of -use assets, net 1,163,799 -
Property and equipment, net 143,258 29,520
Website development costs, net 55,665 -
Deposits and other assets 9,619 9,619
$ 9,937,582 $ 8,210.060
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 100,883 $ 363,348
Related party payables, net 199,937 2,441
Accrued expenses 26,000 26,451
Accrued payroll and related expenses 94,155 72,529
Group booking incentive reserve 138,683 55,620
Current portion of sublease obligations 151,727 -
Total current liabilities 711,385 520,389
Sublease obligations, net of current portion 1,058,424 -
Total liabilities 1,769,809 520,389
Commitments and contingencies
Net assets without donor restrictions 8,167,773 7,689,671
$ 9,937,582 $ 8.210.060
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2023 2022
Support and revenues:
Service fee revenues
$ 11,240,912
S 9,445,421
Advertising and other income
44,000
-
Interest income
125,907
2,272
Total support and revenues
11,410,819
9,447,693
Expenses:
Marketing (including $2,149,913 and $1,806,743
to Newport Beach & Company during 2023 and
2022, respectively — see Note 9)
8,742,659
5,997,635
Salaries and benefits
1,618,690
1,121,805
Other
543,052
363,044
Depreciation and amortization
28,316
12,721
Total expenses
10,932,717
7,495,205
Change in net assets without donor restrictions
478,102
1,952,488
Net assets without donor restrictions, beginning of year
7,689,671
5,737,183
Net assets without donor restrictions, end of year
$ 8,167,773
$ 7.689.671
See accompanying notes to financial statements
4
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2023
2022
Cash flows from operating activities:
Change in net assets without donor restrictions
$ 478,102
$ 1,952,488
Adjustments to reconcile change in net assets without
donor restrictions to net cash provided by operating
activities:
Depreciation and amortization
28,316
12,721
Amortization of right -of -use operating sublease assets
145,420
-
Loss on disposals of property and equipment
221
1,627
Accrued interest income
(55,989)
(1,498)
Changes in operating assets and liabilities:
Accounts receivable
(48,279)
-
Related -party receivables/payables, net
197,496
(15,170)
Prepaid expenses and other current assets
(176,137)
(242,952)
Accounts payable
(262,465)
262,552
Accrued expenses
2,620
(14,590)
Accrued payroll and related expenses
21,626
(2,198)
Group booking incentive reserve
83,063
49,120
Deferred rent
-
(3,071)
Sublease obligations
(102,139)
-
Net cash provided by operating activities
311,855
1,999,029
Cash flows from investing activities:
Purchases of property and equipment (142,275) (24,327)
Website development costs (55,665) -
Purchases of investments (5,292,476) (6,569,480)
Proceeds from sales/maturities of investments 2,988,000 3,618,000
Net cash used in investing activities (2,502,416) (2,975,807)
Cash flows used in financing activities:
Payments on loan payable - (149,280)
Net decrease in cash and cash equivalents (2,190,561) (1,126,058)
Cash and cash equivalents at beginning of year 4,792,516 5,918,574
Cash and cash equivalents at end of year $ 2,601,955 $ 4.7 22.516
Supplemental disclosure of cash flow information:
Cash paid during the year for interest $ - $ 3,816
Supplemental disclosure of non -cash transactions:
Right -of -use sublease asset and sublease obligation
recorded upon adoption of ASC 842 $ 30,438 $ -
Right -of -use sublease assets obtained in exchange for
sublease obligations $ 1,281,852 $ -
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 1— ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the laws
of the State of California.
Transient Occupancy Tax("TOT")
The Organization has an agreement ("TOT Agreement") with the City of Newport Beach (the
"City") through December 31, 2024 to promote tourism and serve the needs of visitors to the City.
Under the terms of the TOT Agreement, the Organization is responsible to develop, plan, carry
out and supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to the City as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized as revenue when received.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease the
percentage of TOT paid to the Organization) as part of its once -annual budget adoption process
for any reason after notice to the Organization and an opportunity for the Organization to formally
comment on the adjustment. For the years ended June 30, 2023 and 2022, the Organization
received approximately 58% and 60%, respectively, of its service fee revenues from the City
through the TOT. The City has the right to terminate the TOT Agreement, without cause, by giving
the Organization 365 days' written notice of its intention to terminate. Should the City reduce or
stop its funding to the Organization due to the Organization's default or termination of the TOT
Agreement, the Organization's operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, and expires on January 31, 2024, pursuant to the Management District Plan, as amended
(the "Plan"). The NBTBID is funded by assessments levied on participating lodging businesses
within a specified district. The assessments are restricted for use for sales promotion and
marketing programs to market the City as a tourist, meeting and event destination as outlined in
the Plan. Either parry may terminate this agreement by providing the other parry ninety calendar
days' written notice prior to the effective date of termination. As the Organization is not entitled
to its share of the assessments collected until paid by the City, amounts are recognized as revenue
to
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 1— ORGANIZATION, continued
when received. For the years ended June 30, 2023 and 2022, the Organization received
approximately 42% and 40%, respectively, of its service fee revenues from the City through TBID
assessments.
As of June 30, 2023 and 2022, the NBTBID is represented by nine (9) hotels within the City of
Newport Beach which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the
receipts annually for the collection of the assessments and disbursements of the NBTBID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions — Net assets that are not subject to donor -imposed stipulations.
These assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions —Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
As of and for the years ended June 30, 2023 and 2022, the Organization had no net assets with
donor restrictions.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
VA
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, fair value of investments, recoverability of long-lived
assets, the allocation of expenses to program activities and general and administrative, and lease
assumptions, including discount rates and lease terms. Actual results may differ from those
estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash and cash
equivalent balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. At June 30, 2023,
the Organization had approximately $5,746,000 of uninsured cash and cash equivalent balances.
The Organization periodically reviews the quality of the financial institutions it has deposits with
to minimize risk of loss. To date, no losses have been incurred.
Investments and Fair Value Measurements
Investments and cash equivalents consist of U.S. Treasury Bills which are carried at amortized
cost, which approximates fair value.
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal market,
the most advantageous market for the asset or liability, in an orderly transaction between market
participants on the measurement date. Accounting guidance establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs in priority that
may be used to measure fair value:
Level 1—Quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
The fair value of the Organization's U.S. Treasury Bills are based partially upon quoted prices in
markets that are not active or inputs which are observable, either directly or indirectly, for
substantially the full term of the assets. These instruments have been classified within Level 2 of
the valuation hierarchy.
As of June 30, 2023 and 2022, the Organization's investments measured at fair value on a recurring
basis were as follows:
June 30. 2023
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Short-term investments:
U.S. Treasury Bills
June 30. 2022
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Short-term investments:
U.S. Treasury Bills
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. At June 30, 2023 and 2022, the Organization considers its accounts
receivable to be fully collectible and accordingly did not record an allowance for doubtful
accounts. As of June 30, 2023, four customers accounted for approximately 55% of the
Organization's total accounts receivable balance.
0
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Website Development Costs
The Organization accounts for the costs of developing its mobile apps and websites by capitalizing
the costs during the application development stage when it is probable that the project will be
completed and the property will be used to perform the function intended. Website development
costs are amortized on a straight-line basis over their estimated useful lives when completed, which
are typically the earlier of approximately three years or term based on estimated disposal date. The
recoverability of website development costs is evaluated periodically, taking into account events
or circumstances that warrant revised estimates of useful lives or that indicate that impairment
exists.
For the years ended June 30, 2023 and 2022, the Organization capitalized website development
costs of $55,665 and $0, respectively.
For the years ended June 30, 2023 and 2022, the Organization recorded amortization expense on
website development costs totaling $0 and $0, respectively.
1,eacec
At the inception of a contract, the Organization determines if the arrangement is, or contains, a
lease. Operating lease right -of -use ("ROU") assets represent the Organization's right to use an
underlying asset for the lease term, and lease liabilities represent its obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized at
commencement date based on the present value of the future minimum lease payments over the
lease term calculated using the risk -free rate commensurate with the term of the ROU asset.
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
ROU assets also include any lease payments made at or before lease commencement and exclude
any lease incentives received. The lease terms may include options to extend the lease when it is
reasonably certain that the Organization will exercise that option. Leases with a term of 12 months
or less are not recognized in the balance sheet. Rent expense is recognized on a straight-line basis
over the lease term.
The Organization accounts for lease and non -lease components as separate lease components for
all its leases.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2023 and 2022, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
Group Booking Incentive Reserve
The Organization has established an incentive program for businesses by paying for certain costs
of conferences and group meetings held in Newport Beach hotels in order to attract businesses and
groups to the City. The incentives are recognized upon the reservation of the hotel for future
meetings. As of June 30, 2023 and 2022, group booking accruals were $138,683 and $55,620,
respectively.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other local
businesses involved in the tourism industry in Newport Beach. All businesses visited are also
sponsors of the Organization. Many of the Organization's sponsors contribute materials, such as
meals and rooms, in connection with this program. During the years ended June 30, 2023 and
2022, the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
contributions as they do not meet the required criteria.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2023 and 2022,
the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2023 and 2022, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. federal, state or local income tax examinations by
tax authorities for years before 2019.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting
Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASC 842"), which requires the lease
rights and obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. ASU 2016-02, as
amended, is effective for reporting periods beginning after December 15, 2021. Most prominent
among the changes in the new standard is the recognition of right -of -use assets and lease liabilities
by lessees for those leases classified as operating leases. Under the new standard, disclosures are
required to meet the objective of enabling users of financial statements to assess the amount, timing
and uncertainty of cash flows arising from leases.
The Organization adopted this standard effective July 1, 2022, using the modified retrospective
approach, which allowed the Organization to make any necessary transition adjustments at July 1,
2022. The Organization elected the optional transition method, which allowed the Organization to
continue to use disclosures required by the prior standard during fiscal year 2023, the year of
adoption.
The adoption of the new standard on July 1, 2022 did not have a material impact on the
Organization's statement of financial position, which resulted in the recognition of operating
sublease right -of -use asset of $27,367, sublease obligation of $30,438 and a reduction in deferred
rent liabilities of $3,071. In addition, the adoption of the new standard did not materially impact
the Organization's results of operations and cash flows. Also, the adoption of ASC 842 did not
have an impact on the Organization's beginning net assets balance.
ASC 842 provides several optional practical expedients in transition to make the transition more
efficient and cost-effective for companies. For leases that commenced prior to July 1, 2022, the
Organization elected (i) the "package of practical expedients," which permits it not to reassess
under the new standard its prior conclusions about lease identification, lease classification, and
initial direct costs, and (ii) the use -of -hindsight in determining the lease term and in assessing
impairment of right -of -use assets.
In addition, ASC 842 provides practical expedients for an entity's ongoing accounting that the
Organization has elected short-term lease recognition exemption for all leases that qualify.
See Note 7 for additional information regarding the Organization's leases.
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Subsequent Events
The Organization has evaluated subsequent events through September 25, 2023, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2023, the Organization has $7,963,677 of financial assets available within one year of
the statement of financial position date to meet cash needs for general expenditures consisting of
cash and cash equivalents of $2,601,955, short-term investments of $5,313,443, and accounts
receivable of $48,279. None of the financial assets are subject to donor or other contractual
restrictions that make them unavailable for general expenditures within one year of the statement
of financial position. The Organization has a goal to maintain financial assets, which consist of
cash, cash equivalents and short-term investments, on hand to meet 180 days of operating
expenses, which are, on average, approximately $900,000 per month. The Organization has a
policy to structure its financial assets to be available as its general expenditures, liabilities, and
other obligations come due. The Organization invests cash in excess of daily requirements in
various short-term treasury instruments.
Funding for the Organization is dependent on the hotel room nights booked in certain Newport
Beach hotels each year and the subsequent portion of the TOT that is allocated through the City to
the Organization and the portion of the TBID assessments that are sent to the Organization from
the TBID participants. Annual revenue fluctuates depending on annual visitors to Newport Beach.
As a result, the Organization closely monitors the monthly projected and received revenue to
determine if any change needs to be made to budgeted annual expenditures.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2023 2022
Computer equipment $ 57,369 $ 21,213
Office furniture and fixtures 197,182 121,159
Leasehold improvements 28,616 -
283,167 142,372
Less accumulated depreciation and amortization (139,902) (112, 552)
$ 143,258 $ 29.520
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2023 and 2022 are as follows:
Salaries and benefits:
Salaries
Payroll taxes and employee benefits
Total salaries and benefits
Other expense:
Marketing
Office lease
Repairs and maintenance
Insurance
Office supplies
Equipment and equipment rental
Postage and other dues and fees
Meeting and education
Professional fees and services
Interest
Depreciation and amortization
Loss on property and equipment disposals
Travel and related
Total functional expenses
2023
Program General and 2022
Activities Administrative Total Total
(Summarized)
$ 977,330 $
281,053
$ 1,258,383
$ 827,673
294,135
66,172
360,307
294,132
1,271,465
347,225
1,618,690
1,121,805
8,132,286
610,373
8,742,659
5,997,635
145,579
48,526
194,105
119,349
7,023
5,074
12,097
35,301
-
7,129
7,129
6,414
3,137
8,258
11,395
6,245
28,833
75,407
104,240
41,507
92,799
9,067
101,866
65,394
7,915
24,331
32,246
35,691
-
47,909
47,909
30,596
-
-
-
3,816
-
28,316
28,316
12,721
-
221
221
1,627
31,844
-
31,844
17,104
$ %720, 881 $ 1, 111,833 $ 10,932,717 $ 7,495,205
The Organization incurred expenses related to program activities totaling approximately
$6,597,000 for the year ended June 30, 2022.
NOTE 6 - LOAN AGREEMENT
On June 3, 2020, the Organization entered into an Economic Injury Disaster Loan (the "Loan")
administered by the U.S. Small Business Administration. The loan had an original principal
balance of $150,000, bore interest at 2.75% per annum and was set to mature on June 3, 2050. The
loan required monthly payments beginning in June 2021. Payments were first applied to interest
accrued and then principal. The amount borrowed under the Loan was guaranteed by substantially
all of the Organization's assets. The Organization used all the proceeds of this Loan solely as
working capital to alleviate economic injury caused by COVID-19. The Loan contained customary
events of default, and the occurrence of an event of default may result in a claim for the immediate
repayment of all amounts outstanding under the Loan. The Organization paid the loan in full during
the year ended June 30, 2022.
15
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization has operating leases and subleases for office space and office equipment rentals.
The Organization was obligated under a deemed sublease for its office space, which was accounted
for as an operating lease. The sublease expired in September 2022. The lessee of the related office
lease was Newport Beach & Company ("NB & Co."), a related parry.
In May 2022, the Organization entered into a sublease agreement with NB & Co. for a smaller
lease space, which was accounted for as a separate lease. Under the sublease, rent is payable at
approximately $17,000 to $20,000 per month and expires in September 2029. In addition, the
Organization has a deemed sublease with NB & Co. for office equipment with monthly payments
of approximately $250 through January 2026. As the new space was not available to be used until
the beginning of 2023 and the office equipment lease commenced in November 2022, these leases
resulted in the Organization recording operating sublease right -of -use assets and corresponding
sublease obligations of $1,281,852 during the year ended June 30, 2023. During the year ended
June 30, 2023, cash paid to NB & Co. under the sublease obligations totaled $149,878.
The operating subleases in place do not contain information to determine the rate implicit in the
leases. As such, the Organization utilized the risk -free discount rates based on the assumed
remaining lease term for the leases to calculate the present value of the remaining lease payments.
At June 30, 2023, the weighted -average discount rate and the weighted average remaining lease
term for the operating subleases held by the Organization was 5% and 6.2 years, respectively.
The components of sublease cost for the year ended June 30, 2023 were as follows:
Operating sublease cost $ 192,470
Variable lease cost, including property taxes, insurance
and maintenance 3,452
Total sublease cost
$ 195,922
Total sublease cost was included in other expenses in the accompanying statement of activities.
16
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Future minimum sublease payments under non -cancelable operating subleases at June 30, 2023
are approximately as follows:
Years Ending
June 30,
2024
2025
2026
2027
2028
Thereafter
Total future minimum lease payments
Less: imputed interest payments
Total operating lease liabilities
Less: current portion
Total
$ 208,000
215,000
222,000
228,000
235,000
305,000
1,413,000
(202,849)
1,210,151
(151,727)
$ 1,058,424
At June 30, 2022, future minimum payments due on the Organization's non -cancelable operating
sublease commitments in excess of one year were approximately as follows:
Years Ending
June 30,
2023
$ 148,000
2024
205,000
2025
213,000
2026
220,000
2027
228,000
Thereafter
540,000
$ 1,554,000
17
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Commitments
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $130 to $17,000 per month over
various terms with 30 months or less remaining at June 30, 2023. From these commitments, the
Organization incurred approximately $669,000 and $502,000 of expenses for the years ended June
30, 2023 and 2022, respectively, which are recorded in marketing expenses in the accompanying
statements of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on June 1,
2014 through December 31, 2024, to the City to be spent on programs or activities that benefit the
public, which is recorded in marketing expenses for the years ended June 30, 2023 and 2022. Due
to the rights of termination per the agreement, these commitments are considered due each June
and December.
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. Pursuant to the TOT Agreement, the Organization also indemnifies
the City and all of its related boards, councils, officers, employees, and volunteers from claims
related to the conduct of the Organization or any of its officers, employees, or associated
individuals. The duration of the guarantees and indemnities varies, and is generally tied to the life
of the agreement. These guarantees and indemnities do not provide for any limitation of the
maximum potential future payments the Organization could be obligated to make. Historically,
the Organization has not been obligated nor incurred any payments for these obligations and,
therefore, no liabilities have been recorded for these indemnities and guarantees in the
accompanying statements of financial position.
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan (the "Plan") covering all eligible employees. The
Plan provides for voluntary employer contributions. The total Plan expense during the years ended
June 30, 2023 and 2022 was approximately $91,000 and $73,000, respectively, and is included in
salaries and benefit expenses in the accompanying statements of activities.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2023 and 2022
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2023 and 2022, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, NB & Co., specializes in marketing
and promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB & Co.
as an exclusive provider of services that the Organization needs to carry out its mission and
obligations to the City. In consideration for these services, the Organization agreed to pay NB &
Co. annual fees totaling $108,000 for the years ended June 30, 2023 and 2022. The Organization
has also agreed to reimburse NB & Co. for all reasonable expenses incurred by it in carrying out
its duties to the Organization, including sublease rent and related facility costs, payroll and related
benefits, and other direct marketing costs. For the years ended June 30, 2023 and 2022, the
Organization incurred $2,041,913 and $1,698,743, respectively, from NB & Co. for these costs,
which are recorded in marketing expenses in the accompanying statements of activities. NB &
Co.'s costs for the years ended June 30, 2023 and 2022 were broken out as follows: $130,831 and
$104,653, respectively, of direct marketing, $1,316,087 and $1,085,958, respectively, of salaries
and benefits, and $594,995 and $508,132, respectively, of other (including rent and related facility
costs). The Agreement, as amended, expires on June 30, 2024.
In addition, payroll and related expenses from shared employees employed under NB & Co. are
allocated to the Organization. During the years ended June 30, 2023 and 2022, payroll and related
expenses of $272,160 and $184,288, respectively, were allocated to the Organization.
As of June 30, 2023 and 2022, the Organization has net related -party payables to NB & Co. of
$199,937 and $2,441, respectively, in the accompanying statements of financial position. These
amounts do not bear interest, are not collateralized, and have no stated repayment terms.
19
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2023
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable
Prepaid expenses and other
current assets
Total current assets
Operating sublease right -of -use
assets, net
Property and equipment, net
Website development costs, net
Deposits and other assets
Current liabilities:
TOT* TBID
$ 1,163,138 $ 1,438,817
2,864,232
2,449,211
44,860
3,419
272,493
329,071
4,344,723
4,220,518
Eliminations Total
$ - $ 2,601,955
- 5,313,443
- 48,279
- 601.564
8,565,241
- 1,163,799 - 1,163,799
5,586 137,672 - 143,258
41,749 13,916 - 55,665
9.619 - - 9.619
$ 4.401.677 $ 5.535.905 $ - $ 9.937.582
Accounts payable
$ 51,793
$ 49,090
Related -party payables, net
99,776
100,161
Accrued expenses
8,000
18,000
Accrued payroll and related
expenses
-
94,155
Group booking incentive reserve
-
138,683
Current portion of sublease
obligations
-
151,727
Total current liabilities
159,569
551,816
Sublease obligations, net
of current portion
-
1,058,424
Total liabilities
159,569
1,610,240
Net assets without donor restrictions
4.242.108
3.925.665
$ 4,401,677 $ 5.535.905
* Includes balances for other marketing and administrative costs.
$ - $ 100,883
- 199,937
- 26,000
- 94,155
- 138,683
151.727
711,385
1,058,424
- 1,769,809
- 8,167,773
20
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2023
Support and revenues:
Service fee revenues
Advertising and other income
Interest income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
Other
Depreciation and amortization
Total expenses
Change in net assets without donor
restrictions
Net assets, beginning of year
Net assets, end of year
TOT* TBID
$ 6,491,957 $ 4,748,955
42,000 2,000
69,903 56,004
6,603,860 4,806,959
6,714,907 2,027,752
- 1,618,690
84,377 458,675
5.503 22.813
6,804,787 4,127,930
(200,927) 679,029
4,443,035 3,246,636
$ 4.242.108 $ 3.925.665
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 11,240,912
- 44,000
- 125,907
11,410,819
8,742,659
1,618,690
543,052
28.316
10,932,717
478,102
7,689,671
21
KJ� �j J I Corbin &
lvl Company
Business Advisors Tax and Audit
September 25, 2023
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Visit Newport Beach Inc. (the "Organization") as of
and for the year ended June 30, 2023, and have issued our report thereon dated September 25,
2023. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated June 27, 2023, our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial statements
that have been prepared by management with your oversight are presented fairly, in all material
respects, in accordance with accounting principles generally accepted in the United States of
America. Our audit of the financial statements does not relieve you or management of its respective
responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, as part of our audits, we
considered the internal control of the Organization solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
In conjunction with the annual audit, we also performed an examination of management's assertion
included in the Management Statement Regarding Compliance with Certain Provisions of the
Agreement Between the City of Newport Beach and the Organization for Tourism Promotion,
Branding, and Marketing Services (the "Agreement"), that the Organization complied with the
provisions in Section 4 of the Agreement regarding the 2023 Expenditures Report, summarizing
the expenditures of funds received pursuant to the Agreement during the year ended June 30, 2023.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach Inc.
September 25, 2023
Page 2
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the Organization's
management has been responsible for (a) making all management decisions and performing all
management functions; (b) assigning a competent individual to oversee the services; (c) evaluating
the adequacy of the services performed; (d) evaluating and accepting responsibility for the results
of the services performed; and (e) establishing and maintaining internal controls, including
monitoring ongoing activities.
Audit Focus Areas Identified
We have identified the following audit focus areas:
• Management override of internal controls is a pervasive risk that could affect many audit
areas and could affect amounts reported in the financial statements.
• Improper revenue recognition due to the inherent risk in revenue recognition.
• Adoption of the new leases standard due to the complex calculations and judgments related
to the recording of assets and liabilities under the new standard.
• Related -parry transactions due to the volume of related -party transactions, in addition to
the disclosure requirements related to such transactions.
• Support for expenses due to the volume of expenses and the need to verify existence,
accuracy and propriety of expenses.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU No. 2016-02, Leases (Topic 842), there have
been no initial selection of accounting policies and no changes in significant accounting policies
Visit Newport Beach Inc.
September 25, 2023
Page 3
or their application during the year ended June 30, 2023. No matters have come to our attention
that would require us, under professional standards, to inform you about (1) the methods used to
account for significant unusual transactions and (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates and Related Disclosures
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly
from management's current judgments. Significant estimates made by the Organization's
management include, but are not limited to, fair value of investments, recoverability of long-lived
assets, the allocation of expenses to program activities and general and administrative, and lease
assumptions, including discount rates and lease terms.
• Management's estimate of the fair value of investments is based on the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal,
or in the absence of a principal market, the most advantageous market for the asset or
liability, in an orderly transaction between market participants on the measurement date.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived assets to their carrying values.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose and nature of the expenditures incurred
during the year.
• Management's estimate of the discount rate on leases is based on the risk -free rate
commensurate with the term of the leased asset. The lease terms include options to extend
the lease when it is reasonably certain that the Company will exercise that option.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting
the Organization's financial statements relate to related -party transactions.
Visit Newport Beach Inc.
September 25, 2023
Page 4
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you
significant unusual transactions identified during our audit. There were no significant unusual
transactions identified as a result of our audit procedures that were brought to the attention of
management.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance
of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods on
the relevant classes of transactions, account balances or disclosures, and the financial statements
as a whole. There were no uncorrected misstatements during the year ended June 30, 2023.
In addition, professional standards require us to communicate to you all corrected misstatements
that were brought to the attention of management as a result of our audit procedures. There were
no corrected misstatements that we identified as a result of our audit procedures that were brought
to the attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor's Report
For purposes of this letter, professional standards require that we communicate any circumstances
that affect the form and content of our auditors' report. We have not identified or obtained
information that affect the form and content of the Auditors' Report.
Visit Newport Beach Inc.
September 25, 2023
Page 5
Representations Requested from Management
We have requested certain written representations from management, which are included in a
separate letter dated September 25, 2023.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed resulted
in a condition to our retention as the Organization's auditors.
Supplemental Information
The supplementary information contained in Schedules I and II of the financial statements is
presented for purposes of additional analysis and is not a required part of the 2023 financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the 2023 financial statements.
The information has been subjected to the auditing procedures applied in the audit of the 2023
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the 2023
financial statements or the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone other
than these specified parties.
Very truly yours,
kMJ" Cam,, � u-P
KMJ Corbin & Company LLP
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
September 25, 2023
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Visit Newport Beach, Inc. (the
"Organization") as of and for the year ended June 30, 2023, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting ("internal control") as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis. A reasonable possibility exists when the
likelihood of an event occurring is either reasonably possible or probable as defined as follows:
• Reasonably possible. The chance of the future event or events occurring is more than remote
but less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses.
Given these limitations, during our audit we did not identify any deficiencies in internal controls that
we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
"J- Colv,,, t lov�n LLP
KMJ Corbin & Company LLP
p 949 431 0997 f 714 734 3431 2855 Michelle Dr Suite 350 Irvine CA 92606 kmlpartnerscpa.com
p 818 999 5885 f 818 610 1090 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
VISIT
NEWPORT
EAIA 19
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64145 - Shipping Charges
64160 - Membership Dues
64170 - Team Meetings
64180 - Education
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
Total Insurance
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2023
Year To Date Year To Date
07/31/2023 07/31/2022
$ Variance Year over
410,796.99
364,329.49
46,467.50
410,796.99
364,329.49
46,467.50
1,576.60
112.89
1,463.71
1,576.60
112.89
1,463.71
412,373.59
364,442.38
47,931.21
86,512.60
61,575.50
24,937.10
78,468.00
91,031.13
(12,563.13)
2,040.00
1,190.00
850.00
12,760.44
9,386.70
3,373.74
179, 781.04
163,183.33
16, 597.71
19,215.00
12,440.79
6,774.21
50.00
50.00
0.00
1,139.85
846.77
293.08
200.06
153.74
46.32
2,815.93
2,281.47
534.46
11,010.65
8,383.45
2,627.20
414.91
93.75
321.16
317.72
1,656.63
(1,338.91)
35,164.12
25,906.60
9,257.52
112.02
0.00
112.02
448.37
0.00
448.37
225.74
0.00
225.74
434.12
2,695.51
(2,261.39)
2,327.50
2,948.18
(620.68)
5,941.24
4,374.00
1,567.24
714.40
595.59
118.81
1,200.00
900.00
300.00
26.65
25.85
0.80
29,057.75
25,493.53
3,564.22
239.10
50.00
189.10
3,639.50
0.00
3,639.50
2,995.16
678.46
2,316.70
121.42
536.60
(415.18)
47,482.97
38,297.72
9,185.25
33,355.80 22,691.16
0.00 1,350.00
147.50 234.50
33,503.30 24,275.66
3,984.83 3,294.63
3,984.83 3,294.63
10,664.64
(1,350.00)
(87.00)
9,227.64
690.20
690.20
VISIT
NEWPORT
EAIA 19
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2023
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66121 - Promotional Gift Cards
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
Total Advertising Expenses
Marketing Expenses
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
66211 - CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income (Loss)
Year To Date Year To Date
07/31/2023 07/31/2022
237.61 274.62
743.00 0.00
980.61 274.62
0.00
3,019.29
3,047.23
1,378.20
671.87
314.15
353.87
705.33
50.00
105.03
4,122.97 5,522.00
90,074.68 71,664.63
4,829.75 0.00
0.00 2,392.88
0.00 181.64
4,829.75 2,576.52
551.69 0.00
551.69 0.00
781.94
3,703.82
26,800.07
27,213.04
27,582.01
30,916.86
28,133.70
30,916.86
2,899.16
88,285.00
1,555.00
92,739.16
55,608.00
106,087.92
10,000.00
171,695.92
1,801.98
32,500.00
0.00
34,301.98
5,872.00
25,975.00
0.00
31,847.00
$ Variance Year over
(37.01)
743.00
705.99
(3,019.29)
1,669.03
357.72
(351.46)
(55.03)
(1,399.03)
18,410.05
4,829.75
(2,392.88)
(183.64)
2,253.23
551.69
551.69
(2,921.88)
(412.97)
(3,334.85)
(2,783.16)
1,097.18
55,785.00
1,555.00
58,437.18
49,736.00
80,112.92
10, 000.00
139,848.92
8,360.83
2,334.63
6,026.20
125,925.60
1,236.00
124,689.60
118,300.00
98,052.00
20,248.00
252,586.43
101,622.63
150, 963.80
517,021.51
167, 771.61
349,249.90
15,750.00
(1,432.00)
17,182.00
0.00
1,982.31
(1,982.31)
3,692.91
7,800.00
(4,107.09)
19,442.91
8,350.31
11,092.60
874,447.71
470,369.86
404,077.85
(462,074.12)
(105,927.48)
(356,146.64)
VISIT
N LW PORT
BEACH H
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46002 - Gain/Loss on Assets
46001- Interest Income
46004 - Miscellaneous Income
Total Other Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2023
Year To Date Year To Date
06/30/2023 06/30/2022
$ Variance Year over
4,748,954.92
3,768,832.95
980,121.97
4,748,954.92
3,768,832.9E
980,121.97
(222.09)
(1,627.23)
1,405.14
56,004.43
845.25
55,159.18
2,000.00
0.00
2,000.00
57,782.34
(781.98)
58,564.32
Total Operating Revenue
4,806,737.26
3,768,050.97
1,038,686.29
Expenses
Salary and Wages
61010 - Salaries and Wages
1,051,329.23
776,619.90
274,709.33
61015 - Bonuses and Commissions
207,054.29
51,054.23
156,000.06
61020 - Auto Allowance
17,105.00
15,230.00
1,875.00
61030 - Payroll Tax Expenses
93,089.06
73,447.92
19,641.14
61040 - Accrued PTO Expense
18,567.34
16,452.13
2,115.21
Total Salary and Wages
1,387,144.92
932,804.18
454,340.74
Benefits
61110 - Medical Insurance
96,777.22
83,052.85
13,724.37
61115 - Benefit Administrative Fees
300.00
300.00
0.00
61120 - Dental Insurance
5,927.33
5,727.39
199.94
61125 - Vision Insurance
1,083.02
949.32
133.70
61130 - Life and Disability
15,739.31
15,407.91
331.40
61140 - Retirement Plan (401k)
90,999.24
73,371.23
17,628.01
61150 - Flexible Spending Plan
1,170.43
1,276.75
(106.32)
61160 - Employee Engagement Benefit
15,732.20
7,135.80
8,596.40
Total Benefits
227,728.75
187,221.25
40,507.50
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
8,221.09
4,627.25
3,593.84
64101- Kitchen Supplies
2,833.18
1,617.92
1,215.26
64110 - Office Equipment Leases
1,816.70
2,200.00
(383.30)
64115 - Office Equipment (non-deprec)
27,311.30
7,526.42
19,784.88
64120 - Equipment Repairs & Maintenance
36,012.17
29,373.26
6,638.91
64125 - Computer Software (non-deprec)
8,843.02
8,015.88
827.14
64130 - Voice and Data - Office
7,941.65
8,255.45
(313.80)
64135 - Telephone - Mobile
13,200.00
8,100.00
5,100.00
64136 - Cable Expenses
0.00
770.40
(770.40)
64140 - Postage
820.29
704.22
116.07
64145 - Shipping Charges
921.46
1,208.57
(287.11)
64150 - Bank Fees
40.00
35.00
5.00
64160 - Membership Dues
48,787.78
33,080.60
15,707.18
64165 - Subscriptions
315.39
0.00
315.39
64170 - Team Meetings
6,711.26
6,739.64
(28.38)
64175 - Governance Meeting Expenses
9,280.30
3,020.00
6,260.30
VISIT
N LW PORT
BEACH H
CALIFORNIA
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.655/mile 2023)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101- Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
67101- Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
67108 - Company -Sponsored Events
Total Community Relations
Marketing Collateral
67309 - Business Plan
Total Marketing Collateral
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2023
Year To Date Year To Date
06/30/2023 06/30/2022
$ Variance Year over
12,684.80
24,070.92
(11,386.12)
559.42
205.33
354.09
22,813.22
7,210.38
15,602.84
8,896.87
6,292.31
Z604.56
218,009.90
153,053.55
64,956.35
194,104.94
119,349.50
74,755.44
7,054.41
5,225.00
1,829.41
357.79
0.00
357.79
4,685.25
703.08
3,982.17
206,202.39
125,277.58
80,924.81
1,795.00
1,437.67
357.33
3,816.63
1,779.54
Z037.09
1,769.34
1,769.34
0.00
7,380.97
4,986.55
2,394.42
12,450.00
0.00
1Z450.00
3,923.77
4,331.22
(407.45)
24,518.14
3,055.00
21,463.14
108,000.00
108,000.00
0.00
16,000.00
15,000.00
1,000.00
2,000.00
2,000.00
0.00
166,891.91
132,386.22
34,505.69
9,734.69
1,094.32
8,640.37
5,415.74
5,706.84
(291.10)
1,333.34
353.92
979.42
1,747.38
401.03
1,346.35
161.62
267.21
(105.59)
723.76
165.00
558.76
19,116.53
7,988.32
11,128.21
617,601.70
423,692.22
193,909.48
108,700.00
33,355.00
75,345.00
69,411.81
50,092.70
19,319.11
15,899.04
11,925.71
3,973.33
208,513.69
113,563.73
94,949.96
0.00
1,500.00
(1,500.00)
402,524.54
210,437.14
192,087.40
0.00
43,153.25
(43,153.25)
914.36
0.00
914.36
914.36
43,153.25
(42,238.89)
0.00
4,926.59
(4,926.59)
0.00
4,926.59
(4,926.59)
VISIT
N LW P R T
BEACH ()
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2023
Digital Marketing
67502 - Website Maintenance
67503 - SEO/SEM
66211 - CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Other Expenses
64510 - Moving Expenses
Total Other Expenses
Year To Date Year To Date
06/30/2023 06/30/2022
$ Variance Year over
50,261.61
33,946.56
16,315.05
23,699.90
0.00
23,699.90
67,856.23
25,003.20
42,853.03
141,817.74
58,949.76
82,867.98
142,732.10
107,029.60
35,702.50
50,983.66
46,031.56
4,952.10
201,193.00
104,924.00
96,269.00
112,943.42
69,988.25
42,955.17
365,120.08
220,943.81
144,176.27
236,937.50
159,862.60
77,074.90
29,590.39
3,500.00
26,090.39
63,607.08
57,708.34
5,898.74
6,825.12
7,187.33
(362.21)
336,960.09
228,258.27
108,701.82
25,165.15
11,325.68
13,839.47
78,354.21
66,307.31
12, 046.90
1,569.18
0.00
1,569.18
109,619.66
91,986.88
17,632.78
214,708.20
169,619.87
45,088.33
916,788.37
618,821.95
297,966.42
270,073.80
120,805.01
149,268.79
8,280.85
4,330.05
3,950.80
154,834.16
112,870.21
41, 963.95
433,188.81
238,005.27
195,183.54
4,127,709.19 2,718,011.61 1,409,697.58
0.00 2,821.55 (2,821.55)
0.00 2,821.55 (2,821.55)
Net Income 679,028.07 1,047,217.81 (368,189.74)
Company name:
Report name:
Period:
Location:
Bank
CBT TBID Checking - California Bank and I
Visit Newport Beach, Inc.
Check register
April 1, 2023 to June 30, 2023
400--Visit Newport Beach, Inc. Group Sales
Date
Account no: 5798822408
4/3/2023
4/4/2023
4/4/2023
4/6/2023
4/6/2023
4/6/2023
4/10/2023
4/10/2023
4/11/2023
4/11/2023
4/12/2023
4/16/2023
4/16/2023
4/16/2023
4/16/2023
4/16/2023
4/16/2023
4/16/2023
4/18/2023
4/18/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/19/2023
4/21/2023
4/24/2023
4/25/2023
4/25/2023
4/25/2023
4/26/2023
4/26/2023
4/26/2023
4/26/2023
4/26/2023
4/26/2023
4/27/2023
4/27/2023
4/27/2023
4/27/2023
5/2/2023
5/4/2023
5/4/2023
5/4/2023
5/4/2023
5/4/2023
5/4/2023
5/4/2023
5/9/2023
5/9/2023
5/10/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
5/11/2023
Vendor
V00791--Noble Studios
V01218--UPS
V01997--Association of California State Supervi
V02031--WVE Labs, LLC
V01620--Lido House, LLC
V00526--Hyatt Regency Newport Beach
V01842--Sterling Administration
V00102--Balboa Bay Resort
V01218--UPS
V01997--Association of California State Supervi
V01190--Transamerica Retirement Solutions
V02041--Meetings Made Easy LLC
V00773--VEA Newport Beach
V01620--Lido House, LLC
V00102--Balboa Bay Resort
V01620--Lido House, LLC
V00767--Newport Beach Bayview Marriott
V00102--Balboa Bay Resort
V01218--UPS
V02042--Secretary of State
V01842--Sterling Administration
V02043--MPI Rocky Mountain
V01563--Standard Insurance Company
V01585--Destinations International
V01620--Lido House, LLC
V01620--Lido House, LLC
V00526--Hyatt Regency Newport Beach
V00773--VEA Newport Beach
V01620--Lido House, LLC
V01620--Lido House, LLC
V01474--Renaissance Newport Beach
V01620--Lido House, LLC
V00767--Newport Beach Bayview Marriott
V00773--VEA Newport Beach
V00102--Balboa Bay Resort
V01474--Renaissance Newport Beach
V01740--Choice Builder
V00150--Blue Shield of California
V01218--UPS
V01143--The Irvine Company, LLC
V01842--Sterling Administration
V01564--Standard Insurance RAS Executive
V00798--Northstar Travel Media
V02029--Adriana Rodriguez
V01789--Leinea LLC
V01498--Newport Beach Country Club
V01190--Transamerica Retirement Solutions
V01143--The Irvine Company, LLC
V01038--Skyward Technical Solutions
V00918--Premier Displays and Exhibits
V00302--Cvent, Inc.
V01218--UPS
V02031--WVE Labs, LLC
V02027--Aquatech Water Systems, Inc.
V01620--Lido House, LLC
V01474--Renaissance Newport Beach
V00102--Balboa Bay Resort
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V01218--UPS
V01842--Sterling Administration
V01190--Transamerica Retirement Solutions
V01632--Madden Preprint Media LLC
V00773--VEA Newport Beach
V01835--Voda Films
V00767--Newport Beach Bayview Marriott
V00767--Newport Beach Bayview Marriott
V00767--Newport Beach Bayview Marriott
V01620--Lido House, LLC
V01030--Simpleview, Inc.
V00526--Hyatt Regency Newport Beach
V01080--Stamats Meeting Media, Inc
V02044--Elisa Wong
8225
3/25/23UPS TBID
Voided - 1248
1278
8226
8227
4/7/23 FSA TBID
Voided - 8183
4/1/23 UPS TBID
8228
PP 4-7-23 401(k
8235
8234
8233
8232
8231
8230
8229
SOI FY23 VNB
3/23FSA FeeTBID
8250
8249
8248
8247
8246
8245
8244
8243
8242
8241
8240
8239
8238
8237
8236
5/23 Dental/Vis
5/23 BlueShield
4/15/23UPS TBID
5/23 Irvine Com
4/21/23FSA TBID
8252
8251
1281
1280
1279
PP 4-21-23 401(
5/23 Server AC
8253
8255
8254
4/22/23UPS TBID
1282
8261
8260
8259
8258
8257
8256
4/29/23UPS TBID
5/5/23 FSA TBID
PP 5-5-23 401(k
8269
8268
1285
8267
8266
8265
8264
8263
8262
1284
1283
1,637.50
5.33
-500.00
750.00
1,039.83
4,000.00
642.31
-1,000.00
5.33
500.00
7,099.19
10,000.00
5,750.00
600.00
10,987.55
1,000.00
536.00
1,250.00
5.33
25.00
62.50
3,000.00
751.26
4,875.50
227.65
500.00
500.00
1,000.00
1,000.00
1,000.00
4,000.00
1,200.00
1,000.00
1,500.00
1,000.00
2,000.00
809.24
4,880.77
43.65
16,677.90
642.31
517.13
10,300.00
225.00
750.00
525.00
7,099.19
44.16
3,099.78
2,452.47
5,400.00
5.33
4,860.00
34.00
1,443.53
362.23
2,700.00
2,000.00
500.00
49.96
642.31
7,156.19
174.17
20,000.00
170,270.00
1,000.00
544.00
552.00
530.14
93.75
3,195.00
4,000.00
4,600.00
Company name:
Report name:
Period:
Location:
Bank
CBT TBID Checking - California Bank and I
Visit Newport Beach, Inc.
Check register
April 1, 2023 to June 30, 2023
400--Visit Newport Beach, Inc. Group Sales
Date
Account no: 5798822408
5/15/2023
5/15/2023
5/16/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/18/2023
5/22/2023
5/22/2023
5/22/2023
5/22/2023
5/22/2023
5/23/2023
5/23/2023
5/23/2023
5/23/2023
5/23/2023
5/23/2023
5/24/2023
5/24/2023
5/24/2023
5/24/2023
5/25/2023
5/25/2023
5/25/2023
5/26/2023
5/30/2023
5/30/2023
5/30/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
5/31/2023
6/5/2023
6/5/2023
6/5/2023
6/5/2023
6/5/2023
6/6/2023
6/6/2023
6/7/2023
6/7/2023
6/7/2023
6/7/2023
6/7/2023
6/8/2023
6/12/2023
6/12/2023
6/12/2023
6/12/2023
6/12/2023
6/12/2023
6/12/2023
6/13/2023
6/13/2023
6/19/2023
Vendor
V01842--Sterling Administration
V00947--Hyatt Regency John Wayne Airport NE
V01218--UPS
V00773--VEA Newport Beach
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V01564--Standard Insurance RAS Executive
V01620--Lido House, LLC
V00773--VEA Newport Beach
V00773--VEA Newport Beach
V00102--Balboa Bay Resort
V00773--VEA Newport Beach
V00773--VEA Newport Beach
V00773--VEA Newport Beach
V00130--Best Chauffeured Worldwide
V01878--Carrie Audino Strain
V01080--Stamats Meeting Media, Inc
V01563--Standard Insurance Company
V02052--Maritz Global Events Inc.-Experient In
V02052--Maritz Global Events Inc.-Experient In
V01960--High-Tech Cabling Inc
V01218--UPS
V01740--Choice Builder
V00767--Newport Beach Bayview Marriott
V01842--Sterling Administration
V02053--Maritz Global Events Inc.- Maritz Travi
V01038--Skyward Technical Solutions
V01190--Transamerica Retirement Solutions
V01143--The Irvine Company, LLC
V00767--Newport Beach Bayview Marriott
V01474--Renaissance Newport Beach
V02058--Black Truck Media Marketing LLC
V00890--Performance Solutions Group
V00767--Newport Beach Bayview Marriott
V00150--Blue Shield of California
V01218--UPS
V01498--Newport Beach Country Club
V02059--Jackie Allocca
V01620--Lido House, LLC
V01620--Lido House, LLC
V00947--Hyatt Regency John Wayne Airport NE
V01620--Lido House, LLC
V01620--Lido House, LLC
V01620--Lido House, LLC
V00526--Hyatt Regency Newport Beach
V01632--Madden Preprint Media LLC
V01894--Global Cynergies, LLC
V01474--Renaissance Newport Beach
V00767--Newport Beach Bayview Marriott
V01474--Renaissance Newport Beach
V00492--HelmsBriscoe Performance Group Inc
V01080--Stamats Meeting Media, Inc
V00130--Best Chauffeured Worldwide
V00102--Balboa Bay Resort
V01544--Jennifer Brannon
V01218--UPS
V01842--Sterling Administration
V01620--Lido House, LLC
V00102--Balboa Bay Resort
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V01190--Transamerica Retirement Solutions
V01377--Newport Beach and Company
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V01585--Destinations International
V01878--Carrie Audino Strain
V02031--WVE Labs, LLC
V01218--UPS
V01474--Renaissance Newport Beach
V01835--Voda Films
Document no.
4/23FSAFEETBID
1286
5/6/23 UPS TBID
8282
8281
8280
8279
8278
8277
8276
8275
8274
8273
8272
8271
8270
8283
8284
1289
1288
1287
5/13/23 UPSTBID
6/23 Dental/Vis
8287
5/19/23 FSATBID
8286
8285
PP 5-19-23 401(
6/23 Irvine Co.
8289
8288
8292
8291
8290
6/23 BlueShield
5/20/23 UPSTBID
1291
1290
8304
8303
8302
8301
8300
8299
8298
8297
8296
8295
8294
8293
8308
8307
8306
8305
1292
5/27/23UPS TBID
6/2/23 FSA TBID
8311
8310
8309
1293
PP 6-2-23 401(k
Q4FY23 Marketi
8317
8316
8315
8314
8313
8312
1294
6/3/23 UPS TBID
8318
8321
62.50
3,000.00
159.21
2,000.00
279.83
500.00
517.13
702.37
1,500.00
4,000.00
2,000.00
2,000.00
1,000.00
7,500.00
5,421.50
2,120.00
5,000.00
636.05
13,500.00
6,000.00
714.00
30.55
606.76
2,000.00
642.31
12,500.00
2,949.78
7,312.88
16,677.90
2,045.54
1,000.00
800.00
2,125.00
240.00
4,880.77
5.33
608.00
628.25
310.56
1,264.70
2,000.00
2,000.00
3,000.00
1,000.00
2,000.00
174.17
4,500.00
2,000.00
6,942.63
2,000.00
21,000.00
31,800.00
803.43
845.04
2,150.64
5.33
642.31
2,192.71
1,000.00
7,368.20
500.00
7,339.33
27,000.00
3,747.77
5,000.00
12.91
200.00
1,250.00
600.00
11,020.00
5.33
499.12
6,425.00
Company name:
Report name:
Period:
Location:
Bank
CBT TBID Checking - California Bank and I
Total for CBT TBID Checking
Visit Newport Beach, Inc.
Check register
April 1, 2023 to June 30, 2023
400--Visit Newport Beach, Inc. Group Sales
Date
Account no: 5798822408
6/19/2023
6/19/2023
6/20/2023
6/20/2023
6/20/2023
6/20/2023
6/20/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/21/2023
6/22/2023
6/22/2023
6/23/2023
6/23/2023
6/23/2023
6/23/2023
6/23/2023
6/23/2023
6/23/2023
6/23/2023
6/26/2023
6/27/2023
6/28/2023
6/28/2023
6/28/2023
6/28/2023
6/28/2023
6/29/2023
6/29/2023
6/29/2023
6/29/2023
6/29/2023
6/29/2023
Vendor
V00773--VEA Newport Beach
V01564--Standard Insurance PAS Executive
V01218--UPS
V01842--Sterling Administration
V02065--Wander Events Inc.
V00203--CaISAE
V02064--Crystal Cove State Park
V01740--Choice Builder
V01143--The Irvine Company, LLC
V01190--Transamerica Retirement Solutions
V01842--Sterling Administration
V00767--Newport Beach Bayview Marriott
V00767--Newport Beach Bayview Marriott
V01620--Lido House, LLC
V01474--Renaissance Newport Beach
V01474--Renaissance Newport Beach
V00773--VEA Newport Beach
V00767--Newport Beach Bayview Marriott
V02063--786 Print Media Inc.
V01563--Standard Insurance Company
V00150--Blue Shield of California
V02067--Kelli Wert
V01835--Voda Films
V01038--Skyward Technical Solutions
V00798--Northstar Travel Media
V00767--Newport Beach Bayview Marriott
V01474--Renaissance Newport Beach
V00526--Hyatt Regency Newport Beach
V01474--Renaissance Newport Beach
V00777--Newport Dunes Waterfront Resort Mai
V01143--The Irvine Company, LLC
V01218--UPS
V00302--Cvent, Inc.
V00947--Hyatt Regency John Wayne Airport NE
V00777--Newport Dunes Waterfront Resort Mai
V00918--Premier Displays and Exhibits
V01474--Renaissance Newport Beach
V00102--Balboa Bay Resort
V01498--Newport Beach Country Club
V02070--Tara Wylie
V01983--Group Assist, Inc.
V01888--Ben Stinnett
V02073--Meetings & Incentives Worldwide, Inc
8320
8319
6/10/23UPS TBID
5/23FSA FeeTBID
1295
8322
135282 - VNB Sa
7/23 Dental/Vis
523 - Server Re
PP 6-16-23 401(
6/16/23FSA TBID
8331
8330
8329
8328
8327
8326
8325
8324
8323
7/23 BlueShield
8332
8340
8339
8338
8337
8336
8335
8334
8333
7/23 Irvine Com
6/17/23UPS TBID
8345
8344
8343
8342
8341
8346
1296
1300
1299
1297
1298
12,245.00
517.13
5.33
62.50
3,349.48
589.00
500.00
659.80
49.38
8,499.27
642.31
250.00
1,282.80
1,800.00
2,000.00
3,000.00
21,000.00
1,000.00
431.00
636.05
4,880.77
487.97
2,500.00
2,979.52
44,000.00
184.00
3,195.00
1,000.00
2,500.00
5,500.00
16,677.90
5.33
88,765.00
18,000.00
10,395.00
1,167.36
2,000.00
5,026.58
575.00
500.00
650.00
1,515.80
1,555.00
890,973.61
VISIT
N LW PORT
BEACH 19
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
46004 - Miscellaneous Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2023
Year To Date Year To Date
05/31/2023 05/31/2022
$ Variance Year over
4,348,818.88
3,402,079.86
946,739.02
4,348,818.88
3,402,079.86
946,739.02
4,566.69
241.34
4,325.35
2,000.00
0.00
2,000.00
6,566.69
241.34
6,325.35
4,355,385.57
3,402,321.20
953,064.37
907,817.30
661,294.13
246,523.17
154,977.16
43,701.45
111,275.71
15,640.00
13,680.00
1,960.00
78,144.59
61,591.83
16,552.76
1,156,579.05
780,267.41
376,311.64
95,080.27
80,685.32
14,394.95
300.00
300.00
0.00
6,091.12
5,655.39
435.73
1,074.98
1,053.31
21.67
15,441.69
15,102.80
338.89
77,164.90
63,445.69
13,719.21
2,534.17
1,351.75
1,182.42
12,198.68
4,900.81
7,297.87
209,885.81
172,495.07
37,390.74
7,330.66
4,566.67
2,763.99
2,501.65
914.57
1,587.08
1,632.73
2,200.00
(567.27)
20,700.45
2,398.40
18,302.05
32,872.96
23,305.42
9,567.54
8,564.02
7,961.88
602.14
7,247.29
7,426.16
(178.87)
12,000.00
7,200.00
4,800.00
0.00
780.21
(780.21)
820.29
624.22
196.07
900.14
1,187.89
(287.75)
40.00
35.00
5.00
48,198.78
33,010.60
15,188.18
8,110.00
0.00
8,110.00
6,685.26
6,622.04
63.22
9,280.30
3,000.00
6,280.30
8,404.80
24,054.54
(15,649.74)
25.00
205.33
(180.33)
19,814.12
6,531.92
13,282.20
6,243.02
5,050.86
1,192.16
201,371.47
137,075.71
64,295.76
VISIT
N LW PORT
BEACH 19
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2023
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.655/mile 2023)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101- Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
67101- Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
67108 - Company -Sponsored Events
Total Community Relations
Marketing Collateral
67309 - Business Plan
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503-SEO/SEM
66211- CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
Year To Date Year To Date
05/31/2023 05/31/2022
$ Variance Year over
150,782.04
141,230.36
9,551.68
6,850.54
225.00
6,625.54
357.79
0.00
357.79
4,519.98
337.94
4,182.04
162,S10.3S
141,793.30
20,717.05
1,795.00
1,437.67
357.33
3,816.63
2,001.50
1,815.13
1,769.34
1,769.34
0.00
7,380.97
5,208.S1
2,172.46
12,450.00
0.00
12,450.00
3,394.77
3,956.56
(561.79)
22,606.14
1,900.00
20,706.14
81,000.00
81,000.00
0.00
119,450.91
86,856.S6
32,594.35
9,734.69
695.13
9,039.56
5,415.74
4,344.56
1,071.18
1,333.34
251.89
1,081.45
1,654.59
401.03
1,253.56
125.38
250.62
(125.24)
368.88
165.00
203.88
18,632.62
6,108.23
12,524.39
S09,346.32
377,042.31
132,304.01
41,800.00
11,855.00
29,945.00
52,783.31
39,400.25
13,383.06
15,777.96
6,166.48
9,611.48
172,907.44
81,011.94
91,895.50
183.64
0.00
183.64
1,369.86
1,500.00
(130.14)
284,822.21
139,933.67
144,888.54
0.00
43,153.25
(43,153.25)
914.36
0.00
914.36
914.36
43,1S3.2S
(42,238.89)
0.00
4,926.59
(4,926.59)
0.00
4,926.S9
(4,926.59)
50,087.44
31,359.06
18,728.38
21,300.00
0.00
21,300.00
49,364.56
25,003.20
24,361.36
120,752.00
56,362.26
64,389.74
121,666.36
104,442.10
17,224.26
38,458.56
31,858.06
6,600.50
VISIT
NLWPORT
BEACH 19
CALIFORNIA
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Other Expenses
64510 - Moving Expenses
Total Other Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2023
Year To Date Year To Date
05/31/2023 05/31/2022
$ Variance Year over
206,978.00
103,799.00
103,179.00
111,776.06
68,943.77
42,832.29
357,212.62
204,600.83
152,611.79
235,753.50
108,497.00
127,256.50
29,590.39
0.00
29,590.39
62,957.08
53,410.00
9,547.08
6,825.12
2,187.33
4,637.79
335,126.09
164,094.33
171,031.76
18,937.09
10,542.49
8,394.60
60,691.47
4,907.31
55,784.16
1,569.18
0.00
1,569.18
107,132.00
89,666.88
17,465.12
188,329.74
105,116.68
83,213.06
880,668.45
473,811.84
406,856.61
167,140.80
24,849.71
142,291.09
6,658.58
3,767.70
2,890.88
82,411.21
70,313.52
12, 097.69
256,210.59
98,930.93
157,279.66
3,419,178.79 2,146,923.33 1,272,255.46
0.00 555.55 (555.55)
0.00 555.55 (555.55)
Net Income 936,206.78 1,254,842.32 (318,635.54)
VISIT
NEWPORT
BEACH H
CALIFORNIA,
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2023
Year To Date Year To Date
04/30/2023 04/30/2022
$ Variance Year over
3,954,931.42
3,031,658.84
923,272.58
3,954,931.42
3,031,658.84
923,272.58
3,518.26
208.45
3,309.81
3,518.26
208.45
3,309.81
Total Operating Revenue
3,958,449.68
3,031,867.29
926,582.39
Expenses
Salary and Wages
61010 - Salaries and Wages
822,632.99
591,977.63
230,655.36
61015 - Bonuses and Commissions
154,977.16
43,701.45
111,275.71
61020 - Auto Allowance
13,775.00
12,330.00
1,445.00
61030 - Payroll Tax Expenses
71,571.46
56,202.74
15,368.72
Total Salary and Wages
1,062,956.61
704,211.82
358,744.79
Benefits
61110 - Medical Insurance
85,330.88
73,434.42
11,896.46
61115 - Benefit Administrative Fees
275.00
275.00
0.00
61120 - Dental Insurance
5,632.71
5,157.59
475.12
61125 - Vision Insurance
974.84
962.97
11.87
61130 - Life and Disability
13,991.90
13,280.78
711.12
61140 - Retirement Plan (401k)
70,373.27
57,792.34
12,580.93
61150 - Flexible Spending Plan
2,471.67
1,289.25
1,182.42
61160 - Employee Engagement Benefit
11,288.18
3,825.55
7,462.63
Total Benefits
190,338.45
156,017.90
34,320.55
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
6,837.04
4,331.36
2,505.68
64101- Kitchen Supplies
3,004.92
926.23
2,078.69
64110 - Office Equipment Leases
1,406.99
2,000.00
(593.01)
64115 - Office Equipment (non-deprec)
20,700.45
1,659.71
19,040.74
64120 - Equipment Repairs & Maintenance
29,923.18
21,126.52
8,796.66
64125 - Computer Software (non-deprec)
8,264.14
7,765.50
498.64
64130 - Voice and Data - Office
6,552.93
6,633.47
(80.54)
64135 - Telephone - Mobile
10,800.00
6,300.00
4,500.00
64136 - Cable Expenses
0.00
706.96
(706.96)
64140 - Postage
520.29
576.59
(56.30)
64145 - Shipping Charges
699.72
1,167.21
(467.49)
64150 - Bank Fees
40.00
35.00
5.00
64160 - Membership Dues
48,198.78
33,010.60
15,188.18
64170 - Team Meetings
6,281.48
6,413.24
(131.76)
64175 - Governance Meeting Expenses
9,280.30
3,000.00
6,280.30
64180 - Education
6,829.80
24,054.54
(17,224.74)
64190 - Business Licensing and Fees
25.00
205.33
(180.33)
VISIT
NLWPC f T
BEACH 4)
CALIFORNIA
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.625/mile 2022)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Shoots/Production
67101- Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
67108 - Company -Sponsored Events
Total Community Relations
Marketing Collateral
67309 - Business Plan
Total Marketing Collateral
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2023
Year To Date Year To Date
04/30/2023 04/30/2022
16,805.56 5,829.92
5,335.36 4,376.60
181,505.94 130,118.78
134,104.14
6,510.54
357.79
4.194.9R
�VSin ■7AL,7..1
1,795.00
3,816.63
1.769.R4
130,108.95
0.00
0.00
259.77
130,368.72
1,437.67
2,001.50
1.769.R4
$ Variance Year over
10,975.64
958.76
51,387.16
3,995.19
6,510.54
357.79
3,935.21
14,798.73
357.33
1,815.13
0.00
7,380.97
5,208.51
2,172.46
12,450.00
0.00
12,450.00
3,106.01
3,705.12
(599.11)
20,327.35
0.00
20,327.35
81,000.00
81,000.00
0.00
116,883.36
84,705.12
32,178.24
8,836.73
695.13
8,141.60
4,079.19
4,344.56
(265.37)
572.36
251.89
320.47
1,116.86
401.03
715.83
87.06
250.62
(163.56)
368.88
165.00
203.88
15,061.08
6,108.23
8,952.85
465,998.80
356,509.36
109,489.44
23,900.00
8,880.00
41,154.01
35,900.25
15,312.51
5,166.48
2,637.44
53,401.37
183.64
0.00
1 169 R6
1 Snn nn
64,SS/.4b IU4,if44t$.IU
15,020.00
5,253.76
10,146.03
(50,763.93)
183.64
(130.14)
(20,290.64)
0.00
41,562.25
(41,562.25)
914.36
0.00
914.36
914.36
41,562.25
(40,647.89)
0.00
4,926.59
(4,926.59)
0.00
4,926.59
(4,926.59)
VISIT
NEWPOR T
BEACH
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2023
Digital Marketing
67502 - Website Maintenance
67503 - SEO/SEM
66211 - CRM Maintenance & Platform Subscriptions
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Year To Date Year To Date
04/30/2023 04/30/2022
$ Variance Year over
50,354.82
28,871.56
21,483.26
20,500.00
0.00
20,500.00
44,410.81
25,003.20
19,407.61
115,265.63
53,874.76
61,390.87
116,179.99
100,363.60
15,816.39
33,629.85
27,219.17
6,410.68
196,593.00
103,799.00
92,794.00
111,717.39
67,849.03
43,868.36
341,940.24
198,867.20
143,073.04
205,496.00
92,173.00
113,323.00
29,590.39
0.00
29,590.39
62,957.08
53,410.00
9,547.08
6,825.12
2,187.33
4,637.79
304,868.59
147,770.33
157,098.26
16,433.46
8,473.19
7,960.27
38,121.35
4,907.31
33,214.04
1,569.18
0.00
1,569.18
105,012.00
88,866.88
16,145.12
161,135.99
102,247.38
58,888.61
807,944.82
448,884.91
359,059.91
131,358.00
14,829.71
116,528.29
6,282.83
3,051.76
3,231.07
59,184.64
45,699.67
13,484.97
196,825.47
63,581.14
133,244.33
2,924,801.60
1,934,416.83
990,384.77
Net Income 1,033,648.08 1,097,450.46 (63,802.38)
VISIT
NEWPORT
BE AC: IA @0
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2023
Year To Date Year To Date
03/31/2023 03/31/2022
$ Variance Year over
3,611,915.12
2,785,555.94
826,359.18
3,611,915.12
2,78S,SSS.94
826,359.18
3,259.96
180.24
3,079.72
3,259.96
180.24
3,079.72
3,61S,17S.08
2,785,736.18
829,438.90
738,018.76
522,661.12
154,977.16
43,701.45
12,360.00
10,980.00
65,189.52
50,813.67
970,S4S.44 628,156.24
75,152.30
65,365.99
250.00
250.00
4,986.98
4,624.92
874.70
872.63
12,427.86
12,458.54
63,801.33
52,138.99
2,079.17
899.82
8,778.02
3,491.20
168,3 50.36 140,102.09
6,263.38
3,873.18
2,250.06
843.51
1,181.25
1,800.00
20,700.45
1,659.71
26,779.24
19,404.22
6,668.14
6,133.50
5,858.57
5,836.21
9,600.00
5,400.00
0.00
633.71
520.29
472.26
576.12
1,106.03
40.00
35.00
48,198.78
33,010.60
6,281.48
6,413.24
2,700.21
16.00
6,829.80
7,004.54
0.00
205.33
13,839.13
5,127.92
4,904.44
3,985.71
163,191.34 102,960.67
215,357.64
111,275.71
1,380.00
14,375.85
342,389.20
9,786.31
0.00
362.06
2.07
(30.68)
11, 662.34
1,179.35
5,286.82
28,248.27
Z390.20
1,406.55
(618.75)
19,040.74
7,375.02
534.64
22.36
4,200.00
(633.71)
48.03
(529.91)
5.00
15,188.18
(131.76)
Z 684.21
(174.74)
(205.33)
8,711.21
918.73
60,230.67
VISIT
Visit Newport Beach, Inc. Group Sales (TBID)
N E W f ORT Statement of Activities YoY for March 2023
BEACH 4)
CALIFORNIA
Year To Date
Year To Date
03/31/2023
03/31/2022
$ Variance Year over
Office Lease and Expenses
62100 - Office Lease
117,426.24
118,987.54
(1,561.30)
62110 - Office Repairs and Maintenance
6,510.54
0.00
6,510.54
62115 - Office Move Expenses
357.79
0.00
357.79
62120 - Offsite Storage
3,869.98
0.00
3,869.98
Total Office Lease and Expenses
128,164.55
118,987.54
9,177.01
Insurance
63100 - General Liability Insurance
1,795.00
0.00
1,795.00
63200 - Workers Compensation Insurance
3,816.63
2,001.50
1,815.13
63300 - Board of Directors Insurance
1,769.34
1,769.34
0.00
Total Insurance
7,380.97
3,770.84
3,610.13
Professional Fees
64203 - Recruiting Fees
12,450.00
0.00
12,450.00
64205 - Payroll Processing Service
2,804.10
3,453.68
(649.58)
64206 - Independent Contractors
19,352.35
0.00
19,352.35
67004 - Marketing NBCo Fees
81,000.00
81,000.00
0.00
Total Professional Fees
115,606.45
84,453.68
31,152.77
Travel Expenses
65100 - Airfare
8,836.73
695.13
8,141.60
65200 - Accommodations
2,900.57
3,403.48
(502.91)
65300 - Meals
572.36
251.89
320.47
65400 - Transportation Costs
1,116.86
401.03
715.83
65405 - Mileage ($0.625/mile 2022)
87.06
250.62
(163.56)
65500 - Other Travel Costs
228.88
165.00
63.88
Total Travel Expenses
13,742.46
5,167.15
8,575.31
Total General and Administrative
428,085.77
315,339.88
112,745.89
Advertising Expenses
66101- Advertising - Purchased
18,500.00
8,880.00
9,620.00
66121- Promotional Gift Cards
25,602.86
33,347.60
(7,744.74)
66123 - Promotional Client Gifts
18,978.41
5,166.48
13,811.93
66203 - Creative Design/Development
2,637.44
1,307.63
1,329.81
66205 - Photography/Video Production
183.64
0.00
183.64
67101 - Research
1,369.86
1,500.00
(130.14)
Total Advertising Expenses
67,272.21
50,201.71
17,070.50
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
41,562.25
(41,562.25)
67108 - Company -Sponsored Events
914.36
0.00
914.36
Total Community Relations
914.36
41,562.25
(40,647.89)
Marketing Collateral
67309 - Marketing Plan
0.00
4,926.59
(4,926.59)
Total Marketing Collateral
0.00
4,926.59
(4,926.59)
Digital Marketing
67502 - Website Maintenance
48,543.15
26,384.06
22,159.09
67503 - Online Search Advertising
20,500.00
0.00
20,500.00
66211 - CRM Maintenance
43,660.81
25,003.20
18,657.61
Total Digital Marketing
112,703.96
51,387.26
61,316.70
Total Marketing Expenses
113,618.32
97,876.10
15,742.22
VISIT
N L VIA PC RT
BEACH 4)
CALIFORNIA
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2023
Year To Date Year To Date
03/31/2023 03/31/2022
$ Variance Year over
28,087.54
23,880.05
4,207.49
180,543.00
93,799.00
86,744.00
108,614.92
62,338.03
46,276.89
317,245.46
180,017.08
137,228.38
193,960.00
77,723.00
116,237.00
29,590.39
0.00
29,590.39
62,957.08
53,410.00
9,547.08
3,825.12
7,187.33
(3,362.21)
290,332.59
138,320.33
152,012.26
15,814.66
7,876.85
7,937.81
35,140.21
3,227.31
31,912.90
1,569.18
0.00
1,569.18
105,012.00
87,906.88
17,105.12
157,536.05
99,011.04
58,525.01
765,114.10
417,348.45
347,765.65
120,058.00
7,777.70
112,280.30
4,907.34
2,855.38
2,051.96
45,679.61
34,780.68
10,898.93
170,644.95
45,413.76
125,231.19
2,683,631.15
1,694,438.23
989,192.92
931,543.93
1,091,297.95
(159,754.02)
Company name:
Visit Newport Beach, Inc. -TBID
Report name:
TBID Check register 1-1-23 to 3-31-23
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Document no.
Amount
CBT TBID Checking - California Bank
and Tr Account no: 5798822408
1/3/2023
V01218--UPS
12/3/22UPS TBID
5.17
1/4/2023
V01938--Sally Ross
Voided - 1261
0.00
1/4/2023
V01938--Sally Ross
1262
591.96
1/5/2023
V01842--Sterling Administration
12/30/22FSATBID
326.75
1/5/2023
V01190--Transamerica Retirement Solutions
PP 12/30/22 401
6,487.89
1/5/2023
V01842--Sterling Administration
23 FundingTBID
1,391.67
1/5/2023
V01620--Lido House, LLC
8065
1,000.00
1/5/2023
V00918--Premier Displays and Exhibits
8064
1,044.48
1/5/2023
V01966--NU Cabling Inc
8063
1,623.40
1/5/2023
V01620--Lido House, LLC
8062
2,750.00
1/5/2023
V01620--Lido House, LLC
8061
1,548.00
1/9/2023
V01143--The Irvine Company, LLC
120122 Floor an
1,539.20
1/9/2023
V00773--VEA Newport Beach
1264
1,000.00
1/9/2023
V01390--George Hardman
8069
96.70
1/9/2023
V01225--US Travel Association
8068
13,068.75
1/9/2023
V01564--Standard Insurance PAS Executive
8067
517.13
1/9/2023
VO 1563 --Standard Insurance Company
8066
499.89
1/9/2023
V01754--Grace Donahue
1263
205.00
1/9/2023
V01754--Grace Donahue
Voided - 7881
-205.00
1/10/2023
V00102--Balboa Bay Resort
Voided - 8073
-3,000.00
1/10/2023
V01218--UPS
12/31/22UPSTSID
5.33
1/10/2023
V01721--Wells Fargo Vendor Fin Sery
12/22CoplerTBID
225.74
1/10/2023
V01721--Wells Fargo Vendor Fin Sery
11/22CoplerTBID
278.29
1/10/2023
V00102--Balboa Bay Resort
8074
1,000.00
1/10/2023
V00102--Balboa Bay Resort
8073
3,000.00
1/10/2023
V00526--Hyatt Regency Newport Beach
8072
3,000.00
1/10/2023
V00526--Hyatt Regency Newport Beach
8071
1,107.98
1/10/2023
V00773--VEA Newport Beach
8070
219.36
1/12/2023
V01474--Renaissance Newport Beach
8080
500.00
1/12/2023
V01474--Ranalssance Newport Beach
8079
1,200.00
1/12/2023
V01038--Skyward Technical Solutions
8078
13,955.93
1/12/2023
V01474--Renaissance Newport Beach
8077
1,487.50
1/12/2023
V01620--Lido House, LLC
8076
1,000.00
1/12/2023
V01620--Lido House, LLC
8075
1,032.00
1/16/2023
V00791--Noble Studios
8084
5,925.00
1/16/2023
V00773--VEA Newport Beach
8083
2,500.00
1/16/2023
V01083--Staples
8082
3,054.55
1/16/2023
V00918--Premier Displays and Exhibits
8081
148.57
1/17/2023
V01218--UPS
1/7/23 UPS TBID
5.33
1/17/2023
V02007--Noah Brannon
1265
108.00
1/17/2023
V01564--Standard Insurance PAS Executive
8087
517.13
1/17/2023
V01563--Standard Insurance Company
8086
499.89
1/17/2023
V01878--Carrie Audino Strain
8085
2,200.00
1/18/2023
V01842--Sterling Administration
1/13/23FSA TBID
642.31
1/18/2023
V01190--Transamerica Retirement Solutions
PP 1-13-23 401(
7,950.55
1/18/2023
V01620--Lido House, LLC
8092
1,247.50
1/18/2023
V00526--Hyatt Regency Newport Beach
8091
1,442.89
1/18/2023
V00773--VEA Newport Beach
8090
2,000.00
1/18/2023
V00773--VEA Newport Beach
8089
1,000.00
1/18/2023
V01474--Renalssance Newport Beach
8088
937.97
1/23/2023
V01740--Choice Builder
2/23 Denta l/Vls
880.48
1/24/2023
V01218--UPS
1/14/23UPS TBID
5.33
1/24/2023
V01563--Standard Insurance Company
8093
393.10
1/26/2023
V00526--Hyatt Regency Newport Beach
8106
750.00
1/26/2023
V01474--Renalssance Newport Beach
8105
866.00
1/26/2023
V00767--Newport Beach Bayvlew Marriott
8104
500.00
1/26/2023
V01474--Renalssance Newport Beach
8103
3,000.00
1/26/2023
V01474--Renalssance Newport Beach
8102
2,500.00
1/26/2023
V00767--Newport Beach Bayvlew Marriott
8101
1,000.00
1/26/2023
V00773--VEA Newport Beach
8100
1,000.00
1/26/2023
V00526--Hyatt Regency Newport Beach
8099
1,000.00
1/26/2023
V00773--VEA Newport Beach
8098
3,000.00
1/26/2023
V00773--VEA Newport Beach
8097
1,000.00
1/26/2023
V01474--Renalssance Newport Beach
8096
1,000.00
1/26/2023
V00526--Hyatt Regency Newport Beach
8095
1,000.00
1/26/2023
V01474--Renalssance Newport Beach
8094
1,000.00
1/27/2023
V00767--Newport Beach Bayvlew Marriott
8107
500.00
1/30/2023
V01143--The Irvine Company, LLC
2/1/23 Irvine C
16,677.90
1/30/2023
V00150--Blue Shield of California
2/23 BlueShiald
3,669.95
1/30/2023
V01038--Skyward Technical Solutions
8115
4,739.11
1/30/2023
V02011--Jobot, LLC.
8114
11,250.00
1/30/2023
V01713--Northeast CVS Reps
8113
400.00
1/30/2023
V00918--Premier Displays and Exhibits
8112
19,758.72
1/30/2023
V01621--AmTrust North America
8111
522.00
1/30/2023
V01940--Grace Blu Interior Designs
8110
2,377.15
1/30/2023
V00403--FICP
8109
22,620.00
1/30/2023
V01960--High-Tech Cabling Inc
8108
1,215.50
1/31/2023
V01842--Sterling Administration
1/27/23FSA TBID
642.31
1/31/2023
V01218--UPS
1/21/23UPS TBID
5.33
1/31/2023
V01498--Newport Beach Country Club
1267
545.26
1/31/2023
V01498--Newport Beach Country Club
1266
525.00
Company name:
Visit Newport Beach, Inc. -TBID
Report name:
TBID Check register 1-1-23 to 3-31-23
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California Bank
and Tr Account no: 5798822408
1/31/2023
V00773--VEA Newport Beach
8118
5,800.00
1/31/2023
V01030--Slmpleview, Inc.
8116
437.50
1/31/2023
V00767--Newport Beach Bayview Marriott
8117
500.00
1/31/2023
V01498--Newport Beach Country Club
Voided - 1243
-525.00
2/1/2023
V00243--C1ty, of Newport Beach [Revenue DlvI4
8122
42.50
2/1/2023
V01498--Newport Beach Country Club
1268
541.06
2/1/2023
V00767--Newport Beach Bayview Marriott
8121
872.00
2/1/2023
V00767--Newport Beach Bayview Marriott
8119
648.00
2/1/2023
V00773--VEA Newport Beach
8120
1,500.00
2/2/2023
V01190--Transamerica Retirement Solutions
PP 1-27-23 401(
6,719.89
2/2/2023
V01842--Sterling Administration
12/22FSAFeeTBID
62.50
2/2/2023
V00791--Noble Studios
8124
5,925.00
2/2/2023
V00773--VEA Newport Beach
8123
3,000.00
2/3/2023
V01474--Renalssance Newport Beach
Voided - 8031
-500.00
2/7/2023
V01620--Lido House, LLC
Ck8076 Void Or
1,000.00
2/7/2023
V01218--UPS
1/28/23UPS TBID
5.33
2/7/2023
V01620--Lido House, LLC
Voided - 8076
-1,000.00
2/9/2023
V00773--VEA Newport Beach
8127
1,000.00
2/9/2023
V00608--KMJ Corbin and Co.
8126
2,000.00
2/9/2023
V01878--Carrle Audino Strain
8125
1,620.00
2/14/2023
V01218--UPS
2/4/23 UPS TBID
5.33
2/14/2023
V00388--Facility Services
8129
35,891.62
2/14/2023
V01190--Transamerica Retirement Solutions
PP 2-10-23 401(
7,099.19
2/14/2023
V01842--Sterling Administration
2/10/23 FSATBID
642.31
2/14/2023
V00767--Newport Beach Bayvlew Marriott
8128
1,000.00
2/15/2023
V01842--Sterling Administration
1/23 FSAFeeTBID
62.50
2/16/2023
V00130--Best Chauffeured Worldwide
8136
1,378.47
2/16/2023
V00526--Hyatt Regency Newport Beach
8135
4,100.00
2/16/2023
V00773--VEA Newport Beach
8134
500.00
2/16/2023
V01564--Standard Insurance PAS Executive
8133
517.13
2/16/2023
V00773--VEA Newport Beach
8132
2,500.00
2/16/2023
V00526--Hyatt Regency Newport Beach
8131
1,000.00
2/16/2023
V00767--Newport Beach Bayview Marriott
8130
5,000.00
2/21/2023
V01218--UPS
2/11/23 UPSTBID
5.33
2/21/2023
V00130--Best Chauffeured Worldwide
Voided -8136
-1,378.47
2/22/2023
V01740--Cho1ce Builder
3/23 DentalMs
643.21
2/22/2023
V00130--Best Chauffeured Worldwide
8137
1,378.47
2/23/2023
V01143--The Irvine Company, LLC
3/1/23 Irvine-1
16,677.90
2/23/2023
V01143--The Irvine Company, LLC
Voided - 3/1/23 Irvine C
-16,777.90
2/23/2023
V01143--The Irvine Company, LLC
3/1/23 Irvine C
16,777.90
2/27/2023
V00102--Balboa Bay Resort
8157
500.00
2/27/2023
V00773--VEA Newport Beach
8156
1,500.00
2/27/2023
V00773--VEA Newport Beach
8155
1,000.00
2/27/2023
V00526--Hyatt Regency Newport Beach
8154
750.00
2/27/2023
V00102--Balboa Bay Resort
8153
1,000.00
2/27/2023
V00773--VEA Newport Beach
8152
1,000.00
2/27/2023
V00773--VEA Newport Beach
8151
2,500.00
2/27/2023
V00773--VEA Newport Beach
8150
1,000.00
2/27/2023
V00920--Prestige Concepts Promotion and Evenl
8149
1,927.68
2/27/2023
V00773--VEA Newport Beach
8148
2,000.00
2/27/2023
V01474--Renaissance Newport Beach
8147
500.00
2/27/2023
V00773--VEA Newport Beach
8146
3,000.00
2/27/2023
V00773--VEA Newport Beach
8145
3,000.00
2/27/2023
V00773--VEA Newport Beach
8144
1,000.00
2/27/2023
V00526--Hyatt Regency Newport Beach
8143
2,500.00
2/27/2023
V00947--Hyatt Regency John Wayne Airport NB
8142
1,000.00
2/27/2023
V01474--Renalssance Newport Beach
8141
500.00
2/27/2023
V01474--Renalssance Newport Beach
8140
1,000.00
2/27/2023
V00102--Balboa Bay Resort
8139
500.00
2/27/2023
V00102--Balboa Bay Resort
8138
500.00
2/27/2023
V00150--Blue Shield of California
3/23 BlueShield
4,268.88
2/28/2023
V01842--Sterling Administration
2/24/23FSA TBID
642.31
2/28/2023
V01190--Transamerica Reb rement Solutions
PP 2-24-23 401(
7,099.19
2/28/2023
V01218--UPS
2/18/23UPS TBID
5.33
2/28/2023
V01498--Newport Beach Country Club
1269
866.78
2/28/2023
V00267--Conference Direct
8162
16,000.00
2/28/2023
V01563--Standard Insurance Company
8163
499.89
2/28/2023
V00947--Hyatt Regency John Wayne Airport NB
8161
5,000.00
2/28/2023
V00767--Newport Beach Bayview Marriott
8160
1,500.00
2/28/2023
V00102--Balboa Bay Resort
8159
1,000.00
2/28/2023
V00773--VEA Newport Beach
8158
2,000.00
3/1/2023
V01474--Renaissance Newport Beach
8178
500.00
3/1/2023
V01620--Lido House, LLC
8177
586.84
3/1/2023
V01620--Lido House, LLC
8176
732.59
3/1/2023
V00203--CaISAE
8175
3,000.00
3/1/2023
V00767--Newport Beach Bayview Marriott
8174
216.00
3/1/2023
V00526--Hyatt Regency Newport Beach
8173
2,000.00
3/1/2023
V00767--Newport Beach Bayview Marriott
8172
600.00
3/1/2023
V00791--Noble Studios
8171
5,925.00
3/1/2023
V01038--Skyward Technical Solutions
8170
3,046.74
3/1/2023
V00526--Hyatt Regency Newport Beach
8169
2,000.00
Company name:
Visit Newport Beach, Inc. -TBID
Report name:
TBID Check register 1-1-23 to 3-31-23
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document no.
Amount
CBT TBID Checking - California Bank
and Tr Account no: 5798822408
3/1/2023
V01474--Renalssance Newport Beach
8168
1,000.00
3/1/2023
V01474--Renalssance Newport Beach
8167
2,000.00
3/1/2023
V00102--Balboa Bay Resort
8166
1,750.00
3/1/2023
V00102--Balboa Bay Resort
8165
1,000.00
3/1/2023
V00526--Hyatt Regency Newport Beach
8164
2,000.00
3/2/2023
V01143--The Irvine Company, LLC
3/22 Charges
264.96
3/2/2023
V01143--The Irvine Company, LLC
2/22 Charges
100.00
3/7/2023
V01218--UPS
2/25/23UPS TBID
5.33
3/7/2023
V00200--Californla Travel Association (CalTmvel
8179
14,000.00
3/9/2023
V01785--Charles Schwab & Co., Inc
1270
1,000,000.00
3/14/2023
V01218--UPS
3/4/23 UPS TBID
5.33
3/14/2023
V01842--Sterling Administration
3/10/23FSA TBID
642.31
3/14/2023
V00102--Balboa Bay Resort
Voided - 8029
-2,000.00
3/14/2023
V00102--Balboa Bay Resort
Voided - 7974
-2,000.00
3/14/2023
V00526--Hyatt Regency Newport Beach
8186
4,400.00
3/14/2023
V01878--Carrie Audino Strain
8188
710.00
3/14/2023
V01620--Lido House, LLC
8187
1,475.00
3/14/2023
V01474--Renalssance Newport Beach
8185
1,000.00
3/14/2023
V00102--Balboa Bay Resort
8184
500.00
3/14/2023
V00102--Balboa Bay Resort
8183
1,000.00
3/14/2023
V02027--Aquatech Water Systems, Inc.
8182
34.00
3/14/2023
V01649--California Travel Association
8181
6,720.00
3/14/2023
V01960--High-Tech Cabling Inc
8180
1,913.23
3/14/2023
V01190--Transamerica Retirement Solutions
PP 3-10-23 401(
7,099.19
3/15/2023
V01564--Standard Insurance PAS Executive
8193
517.13
3/15/2023
V00920--Prestige Concepts Promotion and Eveni
8192
469.80
3/15/2023
V01030--Slmpleview, Inc.
8191
218.75
3/15/2023
V01474--Renalssance Newport Beach
8190
500.00
3/15/2023
V01474--Renalssance Newport Beach
8189
500.00
3/15/2023
V02029--Adriana Rodriguez
1273
450.00
3/15/2023
V00947--Hyatt Regency John Wayne Airport NB
1272
1,500.00
3/15/2023
V01888--Ben Stinnett
1271
1,261.85
3/17/2023
V00130--Best Chauffeured Worldwide
8194
525.52
3/17/2023
V00102--Balboa Bay Resort
Voided - 7926
-1,000.00
3/18/2023
V02031--WVE Labs, LLC
1274
3,500.00
3/20/2023
V02032--Brandlnk Communications LLC
8196
4,373.27
3/20/2023
V01346--Intacct
8195
150.00
3/20/2023
V00526--Hyatt Regency Newport Beach
Voided - 7946
-3,500.00
3/21/2023
V01218--UPS
3/11/23UPS TBID
5.33
3/21/2023
V01842--Sterling Administration
2/23 FSATBID
62.50
3/21/2023
V01740--Choice Builder
4/23 DentalNis
563.40
3/22/2023
V00920--Prestige Concepts Promotion and Evenl
8210
189.22
3/22/2023
V01346--Intacct
8209
300.00
3/22/2023
V00773--VEA Newport Beach
8208
2,400.00
3/22/2023
V00773--VEA Newport Beach
8207
3,000.00
3/22/2023
V00773--VEA Newport Beach
8206
2,000.00
3/22/2023
V01474--Renalssance Newport Beach
8205
3,000.00
3/22/2023
V00526--Hyatt Regency Newport Beach
8204
4,000.00
3/22/2023
V00102--Balboa Bay Resort
8203
1,000.00
3/22/2023
V01474--11enaissance Newport Beach
8202
1,000.00
3/22/2023
V01563--Standard Insurance Company
8201
520.84
3/22/2023
V00767--Newport Beach Bayvlew Marriott
8200
3,084.12
3/22/2023
V01474--Renalssance Newport Beach
8199
1,000.00
3/22/2023
V01474--Renaissance Newport Beach
8198
1,000.00
3/22/2023
V00169--Bright Business Media LLC
8197
3,500.00
3/22/2023
V00526--Hyatt Regency Newport Beach
1275
1,000.00
3/24/2023
V00150--Blue Shield of California
4/23 BlueShleld
4,880.77
3/27/2023
V01377--Newport Beach and Company
Q3_Fy23 Market)
27,000.00
3/28/2023
V01218--UPS
3/18/23 UPSTSID
5.33
3/28/2023
V01190--Transamerica Retirement Solutions
PP 3-24-23 401(
7,099.19
3/28/2023
V01842--Sterling Administration
3/24/23FSATBID
642.31
3/28/2023
V00533--IMEX America Ltd.
Voided - 1276
-49,200.00
3/28/2023
V00533--IMEX America Ltd.
1276
49,200.00
3/29/2023
V01143--The Irvine Company, LLC
423 - Server Ro
53.47
3/29/2023
V01143--The Irvine Company, LLC
4/23 Wine Com
16,677.90
3/30/2023
V01620--Lido House, LLC
8222
500.00
3/30/2023
V00130--Best Chauffeured Worldwide
8219
237.69
3/30/2023
V01620--Lido House, LLC
8218
3,620.00
3/30/2023
V00526--Hyatt Regency Newport Beach
8217
1,500.00
3/30/2023
V01620--Lido House, LLC
8216
5,750.00
3/30/2023
V01620--Lido House, LLC
8215
2,177.04
3/30/2023
V00767--Newport Beach Bayvlew Marriott
8214
25.36
3/30/2023
V01620--Lido House, LLC
8213
600.00
3/30/2023
V00102--Balboa Bay Resort
8212
5,800.00
3/30/2023
V00526--Hyatt Regency Newport Beach
8211
1,000.00
3/31/2023
V00918--Premier Displays and Exhibits
8224
1,167.36
3/31/2023
V01038--Skyward Technical Solutions
8223
3,054.24
3/31/2023
V01498--Newport Beach Country Club
1277
525.00
3/31/2023
V00102--Balboa Bay Resort
8221
4,600.00
3/31/2023
V01474--Renaissance Newport Beach
8220
1,000.00
Total for CBT TBID Checking
1,552,491.69
VISIT
NEWPORT
BEACH 19
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2023
Year To Date Year To Date
02/28/2023 02/28/2022
$ Variance Year over
3,313,337.03
2,613,594.22
699,742.81
3,313,337.03
2,613,S94.22
699,742.81
2,660.06
150.92
Z509.14
2,660.06
1SO.92
2,509.14
3,315,997.09
2,613,74S.14
702,251.95
699,026.50
453,344.63
245,681.87
103,247.15
37,884.30
65,362.85
10,945.00
9,660.00
1,285.00
58,198.76
44,968.26
13,230.50
871,417.41
545,857.19
325,560.22
66,034.96
58,301.52
7,733.44
225.00
225.00
0.00
4,474.49
4,173.49
301.00
775.61
783.45
(7.84)
11,141.23
11,187.26
(46.03)
56,740.75
46,022.66
10,718.09
2,016.67
837.32
1,179.35
7,869.67
3,203.85
4,665.82
149,278.38
124,734.SS
24,543.83
5,631.70
995.80
4,635.90
1,216.02
811.60
404.42
955.51
1,600.00
(644.49)
19,376.91
1,659.71
17,717.20
23,671.53
17,681.92
5,989.61
7,424.68
6,133.50
1,291.18
5,162.87
5,039.23
123.64
8,400.00
4,500.00
3,900.00
0.00
560.46
(560.46)
520.29
416.41
103.88
554.80
1,042.89
(488.09)
40.00
35.00
5.00
42,652.28
28,075.60
14,576.68
6,281.48
5,193.50
1,087.98
390.21
16.00
374.21
6,779.80
6,679.54
100.26
0.00
205.33
(205.33)
11,127.09
4,425.92
6,701.17
4,904.44
2,873.89
Z030.55
14S,089.61
87,946.30
57,143.31
VISIT
E�� 1� Visit Newport Beach, Inc. Group Sales (TBID)
'G Statement of Activities YoY for February 2023
A4) CALIFORNIA
Year To Date
Year To Date
02/28/2023
02/28/2022
$ Variance Year over
Office Lease and Expenses
62100 - Office Lease
100,748.34
107,866.13
(7,117.79)
62110 - Office Repairs and Maintenance
6,510.54
0.00
6,510.54
62115 - Office Move Expenses
357.79
0.00
357.79
62120 - Offsite Storage
3,544.98
0.00
3,544.98
Total Office Lease and Expenses
111,161.65
107,866.13
3,295.52
Insurance
63200 - Workers Compensation Insurance
3,816.63
2,001.50
1,815.13
63300 - Board of Directors Insurance
1,769.34
1,769.34
0.00
Total Insurance
5,585.97
3,770.84
1,815.13
Professional Fees
64203 - Recruiting Fees
12,450.00
0.00
12,450.00
64205 - Payroll Processing Service
2,520.60
3,207.24
(686.64)
64206 - Independent Contractors
18,902.35
0.00
18,902.35
67004 - Marketing NBCo Fees
54,000.00
54,000.00
0.00
Total Professional Fees
87,872.95
57,207.24
30,665.71
Travel Expenses
65100 - Airfare
3,980.35
362.95
3,617.40
65200 - Accommodations
1,791.65
2,045.07
(253.42)
65300 - Meals
481.10
241.61
239.49
65400 - Transportation Costs
873.63
186.63
687.00
65405 - Mileage ($0.625/mile 2022)
87.06
250.62
(163.56)
65500 - Other Travel Costs
142.03
115.00
27.03
Total Travel Expenses
7,355.82
3,201.88
4,153.94
Total General and Administrative
357,066.00
259,992.39
97,073.61
Advertising Expenses
66101- Advertising - Purchased
15,000.00
8,880.00
6,120.00
66121- Promotional Gift Cards
20,702.86
27,219.65
(6,516.79)
66123 - Promotional Client Gifts
14,402.13
1,554.94
12,847.19
66203 - Creative Design/Development
2,583.56
1,307.63
1,275.93
66205 - Photography/Video Production
183.64
0.00
183.64
67101 - Research
1,369.86
1,500.00
(130.14)
Total Advertising Expenses
54,242.05
40,462.22
13,779.83
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
41,562.25
(41,562.25)
67108 - Company -Sponsored Events
914.36
0.00
914.36
Total Community Relations
914.36
41,562.25
(40,647.89)
Digital Marketing
67502 - Website Maintenance
42,618.15
23,896.56
18,721.59
67503 - Online Search Advertising
20,500.00
0.00
20,500.00
66211 - CRM Maintenance
39,942.06
25,003.20
14,938.86
Total Digital Marketing
103,060.21
48,899.76
54,160.45
Total Marketing Expenses
103,974.57
90,462.01
13,512.56
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
27,518.17
21,064.36
6,453.81
66222 - Trade Show Registration
127,886.00
80,999.00
46,887.00
VISIT
l EWPORT
BEACIA 4)
CALIFORNIA
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2023
Year To Date
Year To Date
02/28/2023
02/28/2022
$ Variance Year over
124,385.38
56,723.42
67,661.96
279,789.55
158,786.78
121,002.77
177,560.00
64,773.00
112,787.00
22,870.39
0.00
22,870.39
62,957.08
53,410.00
9,547.08
3,825.12
5,000.00
(1,174.88)
267,212.59
123,183.00
144,029.59
13,723.42
6,729.00
6,994.42
32,114.69
3,227.31
28,887.38
1,569.18
0.00
1,569.18
104,302.00
86,746.88
17,555.12
151,709.29
96,703.19
55,006.10
698,711.43
378,672.97
320,038.46
102,838.00
6,777.70
96,060.30
4,797.43
2,855.38
1,942.05
37,656.24
33,534.48
4,121.76
145,291.67
43,167.56
102,124.11
2,379,981.51
1,483,348.89
896,632.62
936,015.58
1,130,396.25
(194,380.67)
VISIT
NLWP ]i T
BEACH
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2022
Year To Date Year To Date
12/31/2022 12/31/2021
2,653,737.98 2,076,385.40
2,653,737.98 2,076,385.40
$ Variance Year over
577,352.58
577.352.58
1,257.63
97.31
1,160.32
1,257.63
97.31
1,160.32
2,654,995.61
2,076,482.71
578,512.90
484,547.59
315,595.41
168,952.18
103,247.15
11,634.30
91,612.85
8,140.00
7,020.00
1,120.00
38,812.61
30,071.89
8,740.72
634,747.35
364,321.60
270,425.75
50,082.43
44,928.58
5,153.85
175.00
175.00
0.00
3,081.66
3,233.33
(151.67)
548.39
605.09
(56.70)
8,109.98
8,644.70
(534.72)
42,758.83
33,181.80
9,577.03
500.00
1,064.25
(564.25)
5,097.76
2,660.41
2,437.35
110,354.05
94,493.16
15,860.89
882.90
876.06
6.84
653.87
577.45
76.42
504.03
1,200.00
(695.97)
13,981.29
1,439.16
12,542.13
17,165.21
14,187.72
2,977.49
7,061.18
5,913.50
1,147.68
3,771.47
3,748.77
22.70
6,000.00
3,300.00
2,700.00
0.00
413.96
(413.96)
217.05
231.32
(14.27)
467.21
247.83
219.38
40.00
0.00
40.00
26,493.53
18,010.60
8,482.93
4,998.54
1,133.38
3,865.16
131.80
0.00
131.80
2,800.00
4,398.16
(1,598.16)
0.00
205.33
(205.33)
4,981.48
3,021.92
1,959.56
4,191.19
2,386.44
1,804.75
94,340.75
61,291.60
33,049.15
VISIT
NLWPOf T
B L ►C H 0
CALIFORNIA
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.625/mile 2022)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66205 - Photography/Video Production
67101- Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Total Community Relations
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2022
Year To Date Year To Date
12/31/2022 12/31/2021
$ Variance Year over
67,392.54
85,623.31
(18,230.77)
4,920.88
0.00
4,920.88
357.79
0.00
357.79
2,894.98
0.00
2,894.98
75,566.19
85,623.31
(10,057.12)
3,294.63
2,001.50
1,293.13
1,769.34
1,769.34
0.00
5,063.97
3,770.84
1,293.13
1,200.00
0.00
1,200.00
1,763.56
2,563.86
(800.30)
15,960.46
0.00
15,960.46
54,000.00
54,000.00
0.00
72,924.02
56,563.86
16,360.16
3,120.27
362.95
2,757.32
1,791.65
2,045.07
(253.42)
481.10
210.97
270.13
873.63
186.63
687.00
87.06
250.62
(163.56)
142.03
115.00
27.03
6,495.74
3,171.24
3,324.50
254,390.67
210,420.85
43,969.82
15,000.00
0.00
15,000.00
3,967.85
26,219.65
(22,251.80)
26,016.58
1,048.70
24,967.88
2,583.56
1,198.18
1,385.38
183.64
0.00
183.64
1,369.86
1,500.00
(130.14)
49,121.49
29,966.53
19,154.96
0.00
41,562.25
(41,562.25)
0.00
41,562.25
(41,562.25)
30,707.64
18,921.56
11,786.08
20,500.00
0.00
20,500.00
39,504.56
25,003.20
14,501.36
90,712.20
43,924.76
46,787.44
90,712.20
85,487.01
5,225.19
21,946.36
20,382.30
1,564.06
86,234.00
53,111.00
33,123.00
97,109.78
38,372.09
58,737.69
205,290.14
111,865.39
93,424.75
VISIT
NLWPOf T
B L ►C H 0
CALIFORNIA
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2022
Year To Date Year To Date
12/31/2022 12/31/2021
$ Variance Year over
126,774.00
50,203.00
76,571.00
12,115.37
0.00
12,115.37
56,775.00
53,410.00
3,365.00
195,664.37
103,613.00
92,051.37
11,648.45
5,379.08
6,269.37
29,664.04
3,227.31
26,436.73
1,569.18
0.00
1,569.18
100,482.00
61,922.32
38,559.68
143,363.67
70,528.71
72,834.96
544,318.18
286,007.10
258,311.08
61,838.00
727.70
61,110.30
4,351.41
370.64
3,980.77
29,342.45
22,360.53
6,981.92
95,531.86
23,458.87
72,072.99
1,779,175.80
1,094,155.12
685,020.68
875,819.81
982,327.59
(106,507.78)
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 10-1-22 to 12-31-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document Na-
CBT TBID Checking - California
Bank and Tr Account NO: 5798822408
10/4/2022
V01218--UPS
9/24/22 UPSTBID
5.00
10/5/2022
V01498--Newport Beach Country Club*
1241
525.00
10/5/2022
VO1888--Ben Stinnett
1240
1,615.80
10/7/2022
V00791--Noble Studios
7971
6,075.00
10/7/2022
V01474--Renaissance Newport Beach
7970
1,500.00
10/7/2022
V01474--Renaissance Newport Beach
7969
1,000.00
10/11/2022
V01218--UPS
9/17/22 UPSTBID
5.17
10/11/2022
V01981--GREENSPRING MEDIA LLC
7972
15,000.00
10/12/2022
V01842--Sterling Administration
10/7/22FSATBID
326.93
10/12/2022
V01190--Transamerica Retirement Solutions
PP 30/7/22 401(
6,581.89
10/13/2022
V01842--Sterling Administration
9/22 FSAFeeTBID
62.50
10/18/2022
V01218--UPS
10/8/22 UPSTBID
35.05
10/21/2022
V01740--Choice Builder
11/22 Dental/Vi
542.27
10/21/2022
V01927--Beltmann Group Inc NW5968
7975
202.74
10/21/2022
V00102--Balboa Bay Resort
7974
2,000.00
10/21/2022
V00947--Hyatt Regency John Wayne Airport NB
7973
900.00
10/25/2022
V01218--UPS
10/1/22 UPSTBID
5.17
10/25/2022
V01190--Transamerica Retirement Solutions
PP 10/21/22 401
6,581.89
10/27/2022
V01842--Sterling Administration
10/21/22FSATBID
326.93
10/27/2022
V00526--Hyatt Regency Newport Beach
7983
1,500.00
10/27/2022
V01474--Renaissance Newport Beach
7982
500.00
10/27/2022
V01564--Standard Insurance RAS Executive
7981
517.13
10/27/2022
V01474--Renaissance Newport Beach
7980
1,500.00
10/27/2022
V01927--Beltmann Group Inc NW5968
7979
17.00
10/27/2022
V01983--Group Assist
7978
350.00
10/27/2022
V01960--High-Tech Cabling Inc
7977
1,684.70
10/27/2022
V00492--HelmsBriscoe Performance Group Inc
7976
20,000.00
10/28/2022
V00150--Blue Shield of California
11/22 BlueShiel
3,055.22
10/31/2022
V00302--Cvent, Inc.
7989
1,369.86
10/31/2022
V01038--Skyward Technical Solutions
7988
2,207.30
10/31/2022
V01563--Standard Insurance Company
7987
499.89
10/31/2022
V01787--Prodata Imaging Inc
7986
12.00
10/31/2022
V00947--Hyatt Regency John Wayne Airport NB
7985
1,000.00
10/31/2022
V00773--VEA Newport Beach
7984
1,500.00
11/1/2022
V00526--Hyatt Regency Newport Beach
Voided - 7745
-1,000.00
11/1/2022
V01218--UPS
10/15/22UPSTBID
5.17
11/2/2022
V00526--Hyatt Regency Newport Beach
7990
1,500.00
11/3/2022
V01498--Newport Beach Country Club*
1243
525.00
11/3/2022
V01940--Grace Blu Interior Designs
1242
5,997.02
11/8/2022
V01842--Sterling Administration
11/4/22FSATBID
326.93
11/8/2022
V01218--UPS
10/22/22UPSTBID
5.17
11/10/2022
V01190--Transamerica Retirement Solutions
PP 11/4/22 401(
6,581.89
11/10/2022
V01620--Lido House, LLC
7996
4,520.00
11/10/2022
V01620--Lido House, LLC
7995
1,200.00
11/10/2022
V01966--NU Cabling Inc
7994
6,493.60
11/10/2022
V00102--Balboa Bay Resort
7993
1,000.00
11/10/2022
V00773--VEA Newport Beach
7992
3,000.00
11/10/2022
V00773--VEA Newport Beach
7991
1,000.00
11/13/2022
V01927--Beltmann Group Inc NW5968
7997
862.75
11/13/2022
V00918--Premier Displays and Exhibits
1245
26,787.75
11/13/2022
V01940--Grace Blu Interior Designs
1244
4,303.43
11/15/2022
V01218--UPS
10/29/22UPSTBID
5.17
11/15/2022
V00773--VEA Newport Beach
Boos
1,000.00
11/15/2022
V00773--VEA Newport Beach
8007
2,000.00
11/15/2022
V00773--VEA Newport Beach
8006
1,500.00
11/15/2022
V00773--VEA Newport Beach
8005
2,500.00
11/15/2022
V00773--VEA Newport Beach
8004
500.00
11/15/2022
V00773--VEA Newport Beach
8003
500.00
11/15/2022
V00773--VEA Newport Beach
8002
1,000.00
11/15/2022
V00773--VEA Newport Beach
8001
5,000.00
11/15/2022
V00773--VEA Newport Beach
8000
3,000.00
11/15/2022
V00773--VEA Newport Beach
7999
20,000.00
11/15/2022
V00773--VEA Newport Beach
7998
5,000.00
11/17/2022
V01842--Sterling Administration
10/22FSAFeeTBI
62.50
11/21/2022
V00947--Hyatt Regency John Wayne Airport NB
8009
1,000.00
11/21/2022
V00767--Newport Beach Bayview Marriott
8010
2,958.22
11/21/2022
V01940--Grace Blu Interior Designs
1246
2,840.81
11/22/2022
V01218--UPS
11/5/22 UPSTBID
5.17
11/22/2022
V01740--Choice Builder
12/22 Dental/Vi
427.79
11/22/2022
V01190--Transamerica Retirement Solutions
PP 11/18/22 401
6,581.89
11/22/2022
V01842--Sterling Administration
11/18/22FSATBID
326.93
11/28/2022
V01143--The Irvine Company, LLC
2/22 Ste 120 Le
16,677.90
11/29/2022
V01218--UPS
11/12/22UPSTBID
5.17
12/1/2022
V01377--Newport Beach and Company
Q2_Fy23 Marketi
27,000.00
12/1/2022
V00150--Blue Shield of California
12/22 BlueShiel
3,055.22
12/1/2022
V00791--Noble Studios
8013
5,512.50
12/1/2022
V00918--Premier Displays and Exhibits
8012
4,295.26
12/1/2022
V00526--Hyatt Regency Newport Beach
8011
1,500.00
12/1/2022
V00947--Hyatt Regency John Wayne Airport NB
1247
1,200.00
12/2/2022
V00791--Noble Studios
8015
5,925.00
12/2/2022
V01886--Fox Rothchild LLP
8014
570.50
Company Name:
Report Name:
Location:
Bank
CBT TBID Checking - California Bank and Tr
Total for CST TBID Checking
Visit Newport Beach, Inc. - TBID
TBID Check Register - 10-1-22 to 12-31-22
400--Visit Newport Beach, Inc. Group Sales
Date
Vendor
Amount
Account No: 5798822408
12/5/2022
V00791--Noble Studios
8032
412.50
12/5/2022
V01620--Lido House, LLC
8018
1,200.00
12/5/2022
V01474--Renaissance Newport Beach
8031
500.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8026
1,500.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8030
6,500.00
12/5/2022
V00102--Balboa Bay Resort
8021
5,000.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8037
1,000.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8025
2,500.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8038
1,200.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8017
1,500.00
12/5/2022
V00102--Balboa Bay Resort
8029
2,000.00
12/5/2022
V00773--VEA Newport Beach
8016
5,000.00
12/5/2022
V01474--Renaissance Newport Beach
8020
1,500.00
12/5/2022
V00767--Newport Beach Bayview Marriott
8028
500.00
12/5/2022
V00773--VEA Newport Beach
8036
3,500.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8035
2,500.00
12/5/2022
V01474--Renaissance Newport Beach
8034
1,000.00
12/5/2022
V00767--Newport Beach Bayview Marriott
8024
480.00
12/5/2022
V00526--Hyatt Regency Newport Beach
8019
750.00
12/5/2022
V00773--VEA Newport Beach
8023
1,000.00
12/5/2022
V00767--Newport Beach Bayview Marriott
8027
1,112.00
12/5/2022
V00767--Newport Beach Bayview Marriott
8022
760.00
12/5/2022
V01474--Renaissance Newport Beach
8033
1,000.00
12/5/2022
V01940--Grace Blu Interior Designs
1250
3,430.32
12/5/2022
V01997--Association of California State Supervis
1248
500.00
12/5/2022
V01996--California Association of Local Agency F
1249
4,000.00
12/6/2022
V01842--Sterling Administration
12/2/22FSATBID
326.93
12/6/2022
V01218--UPS
11/19/22UPSTBID
5.17
12/7/2022
V01190--Transamerica Retirement Solutions
PP 12/2/22 401(
6,581.89
12/7/2022
V00102--Balboa Bay Resort
8053
1,500.00
12/7/2022
V00102--Balboa Bay Resort
8052
3,000.00
12/7/2022
V01474--Renaissance Newport Beach
8051
1,000.00
12/7/2022
V01620--Lido House, LLC
8050
360.00
12/7/2022
V01474--Renaissance Newport Beach
8049
1,200.00
12/7/2022
V01620--Lido House, LLC
8048
1,200.00
12/7/2022
V01564--Standard Insurance RAS Executive
8047
517.13
12/7/2022
V00767--Newport Beach Bayview Marriott
8046
1,363.58
12/7/2022
V01620--Lido House, LLC
8045
1,680.00
12/7/2022
V00102--Balboa Bay Resort
8044
2,500.00
12/7/2022
V00767--Newport Beach Bayview Marriott
8043
2,936.67
12/7/2022
V00102--Balboa Bay Resort
8042
1,000.00
12/7/2022
V00102--Balboa Bay Resort
8041
500.00
12/7/2022
V00102--Balboa Bay Resort
8040
3,000.00
12/7/2022
V01620--Lido House, LLC
8039
2,314.00
12/7/2022
V00773--VEA Newport Beach
1251
14,250.00
12/7/2022
V01888--Ben Stinnett
1252
58.09
12/7/2022
V01998--Natalie Reveles
1253
61.24
12/8/2022
V00526--Hyatt Regency Newport Beach
8056
3,500.00
12/8/2022
V01620--Lido House, LLC
8055
1,000.00
12/8/2022
V01620--Lido House, LLC
8054
2,000.00
12/13/2022
V01218--UPS
11/26/22UPSTBID
5.17
12/14/2022
V02000--BGs Cleaning Service
1254
275.00
12/14/2022
V01038--Skyward Technical Solutions
8057
11,469.14
12/19/2022
V02003--Ken Robison
1257
100.33
12/19/2022
V02001--Myles Mi-er
1258
42.50
12/19/2022
V01995--Jack Bayless
1256
100.00
12/19/2022
V01940--Grace Blu Interior Designs
1255
4,970.13
12/19/2022
V00102--Balboa Bay Resort
8058
4,970.57
12/19/2022
V01833--Future Plan by Ascensus
8059
754.44
12/20/2022
V01842--Sterling Administration
12/16/22FSATBID
326.93
12/20/2022
V01218--UPS
12/10/22UPSTBID
99.21
12/21/2022
V01740--Choice Builder
1/23 Dental/Vis
485.03
12/21/2022
V01143--The Irvine Company, LLC
1/23 Ste 120 Le
16,677.90
12/22/2022
V01190--Transamerica Retirement Solutions
PP 12/16/22 401
6,581.89
12/23/2022
V01593--J.C.M. Painting
1260
1,350.00
12/23/2022
V01498--Newport Beach Country Club*
1259
744.88
12/27/2022
V01842--Sterling Administration
11/22FSAFeeTBID
62.50
12/27/2022
V01842--Sterling Administration
23FSARenewTBID
187.50
12/27/2022
V00150--Blue Shield of California
1/23 BlueShield
5,474.64
12/27/2022
V01218--UPS
12/17/22UPSTBID
46.06
12/27/2022
V01893--Burton Solution Strategies
8060
1,000.00
12/31/2022
V01938--Sally Ross
Voided - 1223
-591.96
421,394.56
VISIT
NLWP ]RT
BEACIA
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2022
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
Total Salary
and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating
Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64170
- Team Meetings
64175
- Governance Meeting Expenses
64180
- Education
64190
- Business Licensing and Fees
64300
- Depreciation Expense
64600
- Business Meals/Entertainment
Total Operating Expenses
Year To Date
Year To Date
11/30/2022
11/30/2021
$ Variance Year over
2,237,223.22
1,760,048.94
477,174.28
2,237,223.22
1,760,048.94
477,174.28
995.79
76.76
919.03
995.79
76.76
919.03
2,238,219.01
1,760,125.70
478,093.31
356,137.43
237,729.40
118,408.03
97,139.14
5,817.15
91,321.99
6,700.00
5,700.00
1,000.00
29,288.18
(220.94)
29,509.12
489,264.75
249,025.61
240,239.14
40,385.65
38,242.11
2,143.54
150.00
150.00
0.00
2,632.37
2,757.05
(124.68)
467.82
519.91
(52.09)
6,796.90
7,373.42
(576.52)
32,341.68
25,795.16
6,546.52
343.75
318.75
25.00
4,669.72
2,502.06
2,167.66
87,787.89
77,658.46
10,129.43
450.54
734.08
(283.54)
0.00
456.12
(456.12)
0.00
1,000.00
(1,000.00)
7,419.26
1,439.16
5,980.10
9,517.08
10,528.29
(1,011.21)
5,638.64
5,877.50
(238.86)
3,076.57
3,099.07
(22.50)
4,800.00
2,700.00
2,100.00
0.00
344.97
(344.97)
217.05
220.47
(3.42)
425.71
201.48
224.23
40.00
(10.00)
50.00
26,493.53
17,010.60
9,482.93
3,555.60
580.61
2,974.99
131.80
0.00
131.80
0.00
3,181.62
(3,181.62)
0.00
205.33
(205.33)
3,265.77
2,319.92
945.85
3,818.17
1,794.80
2,023.37
68,849.72
51,684.02
17,165.70
VISIT
NEWPORT Visit Newport Beach, Inc. Group Sales (TBID)
BEACIA
Statement of Activities YoY for November 2022
CALIFORNIA0
Year To Date
Year To Date
11/30/2022
11/30/2021
$ Variance Year over
Office Lease and Expenses
62100 - Office Lease
50,714.64
74,501.90
(23,787.26)
62110 - Office Repairs and Maintenance
874.50
0.00
874.50
62115 - Office Move Expenses
357.79
0.00
357.79
62120 - Offsite Storage
2,660.48
0.00
2,660.48
Total Office Lease and Expenses
54,607.41
74,501.90
(19,894.49)
Insurance
63200 - Workers Compensation Insurance
3,294.63
2,663.50
631.13
63300 - Board of Directors Insurance
1,769.34
1,769.34
0.00
Total Insurance
5,063.97
4,432.84
631.13
Professional Fees
64203 - Recruiting Fees
1,200.00
0.00
1,200.00
64205 - Payroll Processing Service
1,335.68
2,199.20
(863.52)
64206 - Independent Contractors
12,805.63
0.00
12,805.63
67004 - Marketing NBCo Fees
27,000.00
27,000.00
0.00
Total Professional Fees
42,341.31
29,199.20
13,142.11
Travel Expenses
65100 - Airfare
3,120.27
0.00
3,120.27
65200 - Accommodations
1,499.18
700.32
798.86
65300 - Meals
470.74
123.95
346.79
65400 - Transportation Costs
774.34
96.35
677.99
65405 - Mileage ($0.625/mile 2022)
0.00
51.03
(51.03)
65500 - Other Travel Costs
142.03
115.00
27.03
Total Travel Expenses
6,006.56
1,086.65
4,919.91
Total General and Administrative
176,868.97
160,904.61
15,964.36
Advertising Expenses
66101- Advertising - Purchased
15,000.00
0.00
15,000.00
66121- Promotional Gift Cards
3,747.85
24,887.75
(21,139.90)
66123 - Promotional Client Gifts
12,917.37
887.02
12,030.35
66203 - Creative Design/Development
2,583.56
446.30
2,137.26
66205 - Photography/Video Production
183.64
0.00
183.64
67101- Research
1,369.86
1,500.00
(130.14)
Total Advertising Expenses
35,802.28
27,721.07
8,081.21
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
41,237.25
(41,237.25)
Total Community Relations
0.00
41,237.25
(41,237.25)
Digital Marketing
67502 - Website Maintenance
24,782.64
16,434.06
8,348.58
66211 - CRM Maintenance
39,504.56
25,003.20
14,501.36
Total Digital Marketing
64,287.20
41,437.26
22,849.94
Total Marketing Expenses
64,287.20
82,674.51
(18,387.31)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
18,119.68
16,691.24
1,428.44
66222 - Trade Show Registration
86,234.00
53,111.00
33,123.00
66223 - Trade Show Booth Expenses
69,720.26
31,565.47
38,154.79
Total Trade Show Expense
174,073.94
101,367.71
72,706.23
VISIT
NLWP ]RT
BEACIA
CALIFORNIA
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2022
Year To Date Year To Date
11/30/2022 11/30/2021
$ Variance Year over
123,074.00
47,993.00
75,081.00
7,064.55
0.00
7,064.55
56,775.00
45,000.00
11,775.00
186,913.55
92,993.00
93,920.55
8,881.29
4,291.68
4,589.61
12,260.52
2,227.31
10,033.21
1,569.18
0.00
1,569.18
100,482.00
59,918.57
40,563.43
123,192.99
66,437.56
56,755.43
484,180.48
260,798.27
223,382.21
25,748.00
727.70
25,020.30
4,307.73
370.64
3,937.09
25,527.61
19,680.41
5,847.20
55,583.34
20,778.75
34,804.59
1,393,774.91
879,561.28
514,213.63
844,444.10
880,564.42
(36,120.32)
VISIT
N E W P �� Visit Newport Beach, Inc. Group Sales (TBID)
BE ACH 19 l� Statement of Activities YoY for October 2022
CALIFORNIA
Year To Date
Year To Date
10/31/2022
10/31/2021
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
1,808,376.73
1,454,092.66
354,284.07
Total Revenue
1,808,376.73
1,454,092.66
354,284.07
Other Income
46001 - Interest Income
731.23
58.26
672.97
Total Other Income
731.23
58.26
672.97
Total Operating Revenue
1,809,107.96
1,454,150.92
354,957.04
Expenses
Salary and Wages
61010 - Salaries and Wages
280,355.12
172,693.50
107,661.62
61015 - Bonuses and Commissions
97,139.14
5,817.15
91,321.99
61020 - Auto Allowance
5,360.00
4,430.00
930.00
61030 - Payroll Tax Expenses
24,024.50
18,927.30
5,097.20
Total Salary and Wages
406,878.76
201,867.95
205,010.81
Benefits
61110 - Medical Insurance
33,627.00
31,555.64
2,071.36
61115 - Benefit Administrative Fees
125.00
125.00
0.00
61120 - Dental Insurance
2,245.09
2,218.53
26.56
61125 - Vision Insurance
412.29
430.73
(18.44)
61130 - Life and Disability
6,078.51
6,102.14
(23.63)
61140 - Retirement Plan (401k)
26,708.05
21,143.80
5,564.25
61150 - Flexible Spending Plan
281.25
187.50
93.75
61160 - Employee Engagement Benefit
2,632.54
2,147.63
484.91
Total Benefits
72,109.73
63,910.97
8,198.76
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64.80
638.18
(573.38)
64101 - Kitchen Supplies
0.00
395.28
(395.28)
64110 - Office Equipment Leases
0.00
800.00
(800.00)
64115 - Office Equipment (non-deprec)
5,223.42
1,439.16
3,784.26
64120 - Equipment Repairs & Maintenance
9,517.08
8,424.84
1,092.24
64125 - Computer Software (non-deprec)
4,538.00
5,837.00
(1,299.00)
64130 - Voice and Data - Office
2,381.67
2,450.94
(69.27)
64135 - Telephone - Mobile
3,600.00
2,100.00
1,500.00
64136 - Cable Expenses
0.00
275.97
(275.97)
64140 - Postage
200.00
178.17
21.83
64145 - Shipping Charges
366.95
186.03
180.92
64150 - Bank Fees
40.00
(10.00)
50.00
64160 - Membership Dues
26,493.53
17,010.60
9,482.93
64170 - Team Meetings
2,779.56
507.19
2,272.37
64175 - Governance Meeting Expenses
131.80
0.00
131.80
64180 - Education
0.00
3,156.62
(3,156.62)
64190 - Business Licensing and Fees
0.00
205.33
(205.33)
64300 - Depreciation Expense
2,650.55
1,617.92
1,032.63
VISIT
N G W P T' Visit Newport Beach, Inc. Group Sales (TBID)
BEACH () Statement of Activities YoY for October 2022
CALIFORNIA
Year To Date
Year To Date
10/31/2022
10/31/2021
$Variance Year over
64600 - Business Meals/Entertainment
1,971.38
930.96
1,040.42
Total Operating Expenses
59,958.74
46,144.19
13,814.55
Office Lease and Expenses
62100 - Office Lease
34,036.74
61,787.77
(27,751.03)
62110 - Office Repairs and Maintenance
874.50
0.00
874.50
62115 - Office Move Expenses
357.79
0.00
357.79
62120 - Offsite Storage
1,563.23
0.00
1,563.23
Total Office Lease and Expenses
36,832.26
61,787.77
(24,955.51)
Insurance
63200 - Workers Compensation Insurance
3,294.63
2,663.50
631.13
63300 - Board of Directors Insurance
1,769.34
1,769.34
0.00
Total Insurance
5,063.97
4,432.84
631.13
Professional Fees
64203 - Recruiting Fees
960.00
0.00
960.00
64205 - Payroll Processing Service
1,043.25
1,950.26
(907.01)
64206 - Independent Contractors
7,658.13
0.00
7,658.13
67004 - Marketing NBCo Fees
27,000.00
27,000.00
0.00
Total Professional Fees
36,661.38
28,950.26
7,711.12
Travel Expenses
65100 - Airfare
3,120.27
0.00
3,120.27
65200 - Accommodations
1,499.18
700.32
798.86
65300 - Meals
344.79
123.95
220.84
65400 - Transportation Costs
774.34
96.35
677.99
65405 - Mileage ($0.625/mile 2022)
0.00
25.89
(25.89)
65500 - Other Travel Costs
127.03
100.00
27.03
Total Travel Expenses
5,865.61
1,046.51
4,819.10
Total General and Administrative
144,381.96
142,361.57
2,020.39
Advertising Expenses
66101 - Advertising - Purchased
15,000.00
0.00
15,000.00
66121 - Promotional Gift Cards
3,747.85
20,875.85
(17,128.00)
66123 - Promotional Client Gifts
11,526.87
737.02
10,789.85
66203 - Creative Design/Development
2,583.56
39.00
2,544.56
66205 - Photography/Video Production
183.64
0.00
183.64
67101 - Research
1,369.86
1,500.00
(130.14)
Total Advertising Expenses
34,411.78
23,151.87
11,259.91
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
3,638.64
(3,638.64)
Total Community Relations
0.00
3,638.64
(3,638.64)
Digital Marketing
67502 - Website Maintenance
18,857.64
13,946.56
4,911.08
66211 - CRM Maintenance
39,504.56
19,399.00
20,105.56
Total Digital Marketing
58,362.20
33,345.56
25,016.64
Total Marketing Expenses
58,362.20
36,984.20
21,378.00
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
11,268.06
10,207.02
1,061.04
VISIT
NLWP f T
BEACH ()
CALIFORNIA
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2022
Year To Date Year To Date
10/31/2022 10/31/2021
$Variance Year over
80,616.00
49,625.00
30,991.00
38,033.23
27,113.98
10,919.25
129,917.29
86,946.00
42,971.29
44,572.00
35,593.00
8,979.00
5,760.36
0.00
5,760.36
51,325.00
45,000.00
6,325.00
101,657.36
80,593.00
21,064.36
8,235.53
3,259.31
4,976.22
11,480.41
2,227.31
9,253.10
1,569.18
0.00
1,569.18
100,482.00
57,783.57
42,698.43
121,767.12
63,270.19
58,496.93
353,341.77
230,809.19
122,532.58
5,568.00
2,227.70
3,340.30
4,091.85
0.00
4,091.85
15,616.45
7,668.41
7,948.04
25,276.30
9,896.11
15,380.19
1,094,762.50
708,981.86
385,780.64
714,345.46
745,169.06
(30,823.60)
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 7-1-22 to 9-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking
- California Bank and Ti Account No: xxxxxxx 2408
7/5/2022
V01218--UPS
6/25/22UPS TBID
5.17
7/6/2022
V01842--Sterling Administration
6/30/22FSA TBID
326.93
7/8/2022
V01190--Transamerica Retirement Solutions
PP 6/30/22 401(
6,219.86
7/12/2022
V01218--UPS
7/2/22 UPS TBID
5.17
7/13/2022
V01842--Sterling Administration
6/22FSAFeeTBID
62.50
7/13/2022
V01695--Carlos Martinez
1226
1,350.00
7/13/2022
V01835--Voda Films
7885
27,050.00
7/13/2022
V00302--Cvent, Inc.
7884
76,392.00
7/13/2022
V00791--Noble Studios
7883
2,250.00
7/13/2022
V01030--Simpleview, Inc.
7882
18,500.00
7/13/2022
V01754--Grace Donahue
7881
205.00
7/13/2022
V00102--Balboa Bay Resort
7880
3,500.00
7/18/2022
V00773--VEA Newport Beach
7891
1,000.00
7/18/2022
V00947--Hyatt Regency John Wayne Airport NB
7890
2,750.00
7/18/2022
V01620--Lido House, LLC
7889
2,067.27
7/18/2022
V00773--VEA Newport Beach
7888
5,000.00
7/18/2022
V00102--Balboa Bay Resort
7887
1,000.00
7/18/2022
V01621--AmTrust North America
7886
3,352.00
7/19/2022
V01218--UPS
7/9/22 UPS TBID
5.17
7/19/2022
V01842--Sterling Administration
7/15/22FSA TBID
326.93
7/19/2022
V01190--Transamerica Retirement Solutions
PP 7/15/22 401(
8,819.18
7/21/2022
V01740--Choice Builder
8/22 Dental/Vis
485.03
7/25/2022
V00773--VEA Newport Beach
1227
50,000.00
7/26/2022
V01218--UPS
7/16/22UPS TBID
5.17
7/27/2022
V00388--Facility Services
7898
35,657.25
7/27/2022
V01038--Skyward Technical Solutions
7897
2,948.18
7/27/2022
V00130--Best Chauffeured Worldwide
7896
798.29
7/27/2022
V01927--Beltmann Group Inc NW5968
7895
365.14
7/27/2022
V01564--Standard Insurance PAS Executive
7894
517.13
7/27/2022
V01563--Standard Insurance Company
7893
498.66
7/27/2022
V01620--Lido House, LLC
7892
400.00
7/28/2022
V01143--The Irvine Company, LLC
8/22 Ste 130 Le
7,479.94
7/29/2022
V00150--Blue Shield of California
8/22 BlueShield
3,055.22
8/1/2022
V01474--Renaissance Newport Beach
Voided - 7786
-3,500.00
8/1/2022
V00947--Hyatt Regency John Wayne Airport NB
Voided - 7890
-2,750.00
8/2/2022
V01218--UPS
7/23/22 UPSTBID
5.17
8/3/2022
V01842--Sterling Administration
7/29/22FSA TBID
326.93
8/3/2022
V01498--Newport Beach Country Club*
1228
500.00
8/3/2022
V00921--Prestige Global Meeting Source
7902
7,500.00
8/3/2022
V00526--Hyatt Regency Newport Beach
7901
1,000.00
8/3/2022
V00947--Hyatt Regency John Wayne Airport NB
7900
2,500.00
8/3/2022
V01474--Renaissance Newport Beach
7899
500.00
8/4/2022
V01835--Voda Films
7905
1,000.00
8/4/2022
V00526--Hyatt Regency Newport Beach
7904
1,000.00
8/4/2022
V00526--Hyatt Regency Newport Beach
7903
750.00
8/4/2022
V01190--Transamerica Retirement Solutions
PP 7/29/22 401(
6,459.33
8/10/2022
V01943--Telescope Group LLC
7907
1,260.00
8/10/2022
V00791--Noble Studios
7906
3,000.00
8/12/2022
V01842--Sterling Administration
7/22FSAFee TBID
62.50
8/17/2022
V01842--Sterling Administration
8/12/22FSA TBID
326.93
8/17/2022
V01190--Transamerica Retirement Solutions
PP 8/12/22 401(
6,581.89
8/19/2022
V01927--Beltmann Group Inc NW5968
7913
202.74
8/19/2022
V01940--Grace Blu Interior Designs
7912
2,812.50
8/19/2022
V01878--Carrie Audino Strain
7911
880.00
8/19/2022
V01030--Simpleview, Inc.
7910
3,500.00
8/19/2022
V00526--Hyatt Regency Newport Beach
7909
2,000.00
8/19/2022
V00947--Hyatt Regency John Wayne Airport NB
7908
5,250.00
8/22/2022
V00773--VEA Newport Beach
7914
26,000.00
8/23/2022
V01740--Choice Builder
9/22 Dental/Vis
485.03
8/23/2022
V01218--UPS
7/30/22ShipTBID
5.17
8/24/2022
V01947--Lisa Garife
1231
118.54
8/24/2022
V01949--Chantell Huff
1230
189.97
8/24/2022
V01950--Amy Durocher
1229
317.97
8/24/2022
V01946--Sheila Dorsey
1234
471.19
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 7-1-22 to 9-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking
- California Bank and Ti Account No: xxxxxxx 2408
8/24/2022
V01948--Patricia Durocher
1232
177.21
8/24/2022
V01951--Shannon Doughherty
1233
273.20
8/26/2022
V00526--Hyatt Regency Newport Beach
7919
3,500.00
8/26/2022
V00526--Hyatt Regency Newport Beach
7918
1,000.00
8/26/2022
V00526--Hyatt Regency Newport Beach
7917
2,000.00
8/26/2022
V00526--Hyatt Regency Newport Beach
7916
1,000.00
8/26/2022
V00947--Hyatt Regency John Wayne Airport NB
7915
1,000.00
8/29/2022
V01143--The Irvine Company, LLC
9/22 Ste 130 Le
11,345.58
8/30/2022
V01218--UPS
8/6/22 UPS TBID
5.17
8/30/2022
V00150--Blue Shield of California
9/22 BlueShield
3,055.22
8/31/2022
V01190--Transamerica Retirement Solutions
PP 8/26/22 401(
6,581.89
8/31/2022
V01570--Crowd Riff Inc.
7925
3,646.60
8/31/2022
V01940--Grace Blu Interior Designs
1235
2,500.00
8/31/2022
V01038--Skyward Technical Solutions
7924
2,172.80
8/31/2022
V00608--KMJ Corbin and Co.
7923
5,500.00
8/31/2022
V01564--Standard Insurance RAS Executive
7922
517.13
8/31/2022
V01620--Lido House, LLC
7921
3,000.00
8/31/2022
V01474--Renaissance Newport Beach
7920
431.00
9/2/2022
V01842--Sterling Administration
8/26/22 FSATBID
326.93
9/6/2022
V01218--UPS
8/27/22UPS TBID
180.63
9/6/2022
V00302--Balboa Bay Resort
7930
1,000.00
9/6/2022
V01474--Renaissance Newport Beach
7929
2,000.00
9/6/2022
V00773--VEA Newport Beach
7928
2,500.00
9/6/2022
V01953--Brandon Candler Tully
7927
831.20
9/6/2022
V00102--Balboa Bay Resort
7926
1,000.00
9/8/2022
V00773--VEA Newport Beach
7939
1,000.00
9/8/2022
V00767--Newport Beach Bayview Marriott
7938
472.00
9/8/2022
V00526--Hyatt Regency Newport Beach
7937
7,800.00
9/8/2022
V01620--Lido House, LLC
7936
400.00
9/8/2022
V00773--VEA Newport Beach
7935
2,500.00
9/8/2022
V00767--Newport Beach Bayview Marriott
7934
568.00
9/8/2022
V01927--Beltmann Group Inc NW5968
7933
202.75
9/8/2022
V00918--Premier Displays and Exhibits
7932
19,468.28
9/8/2022
V01837--Philadelphia Indemnity Insurance Corn
7933
1,769.34
9/9/2022
V00791--Noble Studios
7940
3,000.00
9/13/2022
V01842--Sterling Administration
9/9/22 FSA TBID
326.93
9/13/2022
V01218--UPS
9/3/22 UPS TBID
66.78
9/13/2022
V01927--Beltmann Group Inc NW5968
7951
357.79
9/13/2022
V00302--Balboa Bay Resort
7950
1,200.00
9/13/2022
V01966--NU Cabling Inc
7949
2,705.66
9/13/2022
V00767--Newport Beach Bayview Marriott
7948
1,145.00
9/13/2022
V01474--Renaissance Newport Beach
7947
1,500.00
9/13/2022
V00526--Hyatt Regency Newport Beach
7946
3,500.00
9/13/2022
V01474--Renaissance Newport Beach
7945
1,000.00
9/13/2022
V01474--Renaissance Newport Beach
7944
3,000.00
9/13/2022
V00526--Hyatt Regency Newport Beach
7943
3,000.00
9/13/2022
V00773--VEA Newport Beach
7942
3,500.00
9/13/2022
V00773--VEA Newport Beach
7941
1,000.00
9/14/2022
V01842--Sterling Administration
8/22FSAFeesTBID
62.50
9/14/2022
V01190--Transamerica Retirement Solutions
PP 9/9/22 401(k
6,581.89
9/15/2022
V00918--Premier Displays and Exhibits
7960
2,436.26
9/15/2022
V00921--Prestige Global Meeting Source
7959
5,000.00
9/15/2022
V01563--Standard Insurance Company
7958
499.89
9/15/2022
V01030--Simpleview, Inc.
7957
9,250.00
9/15/2022
V01713--Northeast CVB Reps
7956
750.00
9/15/2022
V00773--VEA Newport Beach
7955
3,000.00
9/15/2022
V00773--VEA Newport Beach
7954
1,500.00
9/15/2022
V00773--VEA Newport Beach
7953
1,000.00
9/15/2022
V01620--Lido House, LLC
7952
500.00
9/19/2022
V01498--Newport Beach Country Club*
1237
500.00
9/19/2022
V00074--Aramark
1236
652.21
9/20/2022
V01218--UPS
8/20/22 UPSTBID
5.17
9/20/2022
V01218--UPS
8/13/22 UPSTBID
5.17
9/21/2022
V01740--Choice Builder
10/22 Dental/Vi
485.03
Company Name: Visit Newport Beach, Inc. - TBID
Report Name: TBID Check Register - 7-1-22 to 9-30-22
Location: 400--Visit Newport Beach, Inc. Group Sales
Bank Date Payee
CBT TBID Checking - California Bank and Ti Account No: xxxxxxx 2408
Document No Amount
9/26/2022
V01377--Newport Beach and Company
Q3_FY23 Market!
27,000.00
9/27/2022
V01218--UPS
9/10/22 UPSTBID
5.17
9/27/2022
V01842--Sterling Administration
9/23/22FSATBID
326.93
9/28/2022
V01190--Transamerica Retirement Solutions
PP 9/23/22 401(
6,581.89
9/28/2022
V01030--Simpleview, Inc.
7961
312.50
9/28/2022
V01713--Northeast CVB Reps
7962
300.00
9/28/2022
V01973--Brand Model and Talent Agency Inc
1238
2,520.00
9/29/2022
V01143--The Irvine Company, LLC
8/12/22 Irvine
220.00
9/29/2022
V01038--Skyward Technical Solutions
7964
2,188.80
9/29/2022
V00608--KMJ Corbin and Co.
7963
9,500.00
9/30/2022
V00150--Blue Shield of California
10/22 BlueShlel
3,055.22
9/30/2022
V01474--Renaissance Newport Beach
7968
1,624.65
9/30/2022
V01564--Standard Insurance PAS Executive
7967
517.13
9/30/2022
V01563--Standard Insurance Company
7966
499.89
9/30/2022
V01878--Carrle Audino Strain
7965
1,550.00
9/30/2022
V01940--Grace Blu Interior Designs
1239
8,864.61
Total for CBT TBID Checking
543,475.05
VISIT
NEWPORT
B E AC H 0
CALIFORNIA
Operating Revenue
Revenue
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2022
Year To Date Year To Date
09/30/2022 09/30/2021
$ Variance Year over
41000 - TOT/TBID Income
1,337,468.76
1,072,787.99
264,680.77
Total Revenue
1,337,468.76
1,072,787.99
264,680.77
Other Income
46001- Interest Income
489.85
40.98
448.87
Total Other Income
489.85
40.98
448.87
Total Operating Revenue
1,337,958.61
1,072,828.97
265,129.64
Expenses
Salary and Wages
61010 - Salaries and Wages
207,428.58
103,658.72
103,769.86
61015 - Bonuses and Commissions
97,139.14
5,817.15
91,321.99
61020 - Auto Allowance
3,970.00
3,160.00
810.00
61030 - Payroll Tax Expenses
19,314.57
14,410.07
4,904.50
Total Salary and Wages
327,852.29
127,045.94
200,806.35
Benefits
61110 - Medical Insurance
28,888.43
24,869.17
4,019.26
61115 - Benefit Administrative Fees
100.00
100.00
0.00
61120 - Dental Insurance
1,753.73
1,724.67
29.06
61125 - Vision Insurance
313.20
341.55
(28.35)
61130 - Life and Disability
4,812.83
4,830.86
(18.03)
61140 - Retirement Plan (401k)
20,762.73
15,295.10
5,467.63
61150 - Flexible Spending Plan
218.75
150.00
68.75
61160 - Employee Engagement Benefit
2,263.73
565.03
1,698.70
Total Benefits
59,113.40
47,876.38
11,237.02
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
52.80
496.63
(443.83)
64101- Kitchen Supplies
0.00
358.95
(358.95)
64110 - Office Equipment Leases
0.00
600.00
(600.00)
64115 - Office Equipment (non-deprec)
3,051.07
1,439.16
1,611.91
64120 - Equipment Repairs & Maintenance
7,309.78
6,622.54
687.24
64125 - Computer Software (non-deprec)
4,538.00
5,801.00
(1,263.00)
64130 - Voice and Data - Office
1,786.77
1,803.01
(16.24)
64135 - Telephone - Mobile
2,700.00
1,500.00
1,200.00
64136 - Cable Expenses
0.00
206.97
(206.97)
64140 - Postage
200.00
150.92
49.08
64145 - Shipping Charges
92.07
139.68
(47.61)
64150 - Bank Fees
40.00
(10.00)
50.00
64160 - Membership Dues
26,493.53
16,515.60
9,977.93
64170 - Team Meetings
2,763.56
313.24
2,450.32
64175 - Governance Meeting Expenses
131.80
0.00
131.80
64180 - Education
0.00
3,156.62
(3,156.62)
64190 - Business Licensing and Fees
0.00
205.33
(205.33)
64300 - Depreciation Expense
2,035.33
1,213.44
821.89
64600 - Business Meals/Entertainment
1,771.19
398.14
1,373.05
Total Operating Expenses
52,965.90
40,911.23
12,054.67
VISIT
NEWPORT
Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for September 2022
CALIFORNIA
Year To Date
Year To Date
09/30/2022
09/30/2021
$ Variance Year over
Office Lease and Expenses
62100 - Office Lease
34,036.74
49,073.64
(15,036.90)
62110 - Office Repairs and Maintenance
220.00
0.00
220.00
62115 - Office Move Expenses
357.79
0.00
357.79
62120 - Offsite Storage
1,108.99
0.00
1,108.99
Total Office Lease and Expenses
35,723.52
49,073.64
(13,350.12)
Insurance
63200 - Workers Compensation Insurance
3,294.63
2,663.50
631.13
63300 - Board of Directors Insurance
1,769.34
1,769.34
0.00
Total Insurance
5,063.97
4,432.84
631.13
Professional Fees
64205 - Payroll Processing Service
787.04
1,706.32
(919.28)
64206 - Independent Contractors
7,501.88
0.00
7,501.88
67004 - Marketing NBCo Fees
27,000.00
27,000.00
0.00
Total Professional Fees
35,288.92
28,706.32
6,582.60
Travel Expenses
65100 - Airfare
3,120.27
0.00
3,120.27
65200 - Accommodations
1,499.18
700.32
798.86
65300 - Meals
344.79
123.95
220.84
65400 - Transportation Costs
774.34
96.35
677.99
65405 - Mileage ($0.625/mile 2022)
0.00
25.89
(25.89)
65500 - Other Travel Costs
127.03
100.00
27.03
Total Travel Expenses
5,865.61
1,046.51
4,819.10
Total General and Administrative
134,907.92
124,170.54
10,737.38
Advertising Expenses
66121- Promotional Gift Cards
3,747.85
10,434.95
(6,687.10)
66123 - Promotional Client Gifts
11,103.72
(62.98)
11,166.70
66203 - Creative Design/Development
2,583.56
0.00
2,583.56
66205 - Photography/Video Production
183.64
0.00
183.64
67101 - Research
0.00
1,500.00
(1,500.00)
Total Advertising Expenses
17,618.77
11,871.97
5,746.80
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
2,587.37
(2,587.37)
Total Community Relations
0.00
2,587.37
(2,587.37)
Digital Marketing
67502 - Website Maintenance
12,742.65
11,459.06
1,283.59
66211 - CRM Maintenance
39,504.56
19,399.00
20,105.56
Total Digital Marketing
52,247.21
30,858.06
21,389.15
Total Marketing Expenses
52,247.21
33,445.43
18,801.78
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
6,833.88
3,452.48
3,381.40
66222 - Trade Show Registration
76,116.00
49,625.00
26,491.00
66223 - Trade Show Booth Expenses
32,612.27
1,133.59
31,478.68
Total Trade Show Expense
115,562.15
54,211.07
61,351.08
Sponsorships
66231 - Sales Group Enhancement Credit
29,072.00
22,448.00
6,624.00
66232 - Hosted Industry Events
4,982.22
0.00
4,982.22
VISIT
NLWP RT
BEACH
CALIFORNIA
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2022
Year To Date
Year To Date
09/30/2022
09/30/2021
$ Variance Year over
30,975.00
45,000.00
(14,025.00)
65,029.22
67,448.00
(2,418.78)
6,312.13
2,921.26
3,390.87
10,151.82
550.00
9,601.82
1,569.18
0.00
1,569.18
100,482.00
53,370.77
47,111.23
118,515.13
56,842.03
61,673.10
299,106.50
178,501.10
120,605.40
2,068.00
(2,500.00)
4,568.00
4,021.49
0.00
4,021.49
15,616.45
5,234.03
10,382.42
21,705.94
2,734.03
18,971.91
912,552.03
525,645.39
386,906.64
425,406.58
547,183.58
(121,777.00)
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2022
with
INDEPENDENT AUDITORS' REPORT THEREON
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management Statement
Regarding Compliance With Certain Provisions of the Agreement Between the City of Newport
Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing Services, that
Visit Newport Beach Inc. (the "Organization") complied with the provisions in Section 4 of the
Agreement Between the City of Newport Beach and Visit Newport Beach Inc. for Tourism
Promotion, Branding, and Marketing Services (the "Agreement") regarding the attached 2022
Expenditures Report, summarizing the expenditures of funds received pursuant to the Agreement
during the period July 1, 2021 to June 30, 2022. The Organization's management is responsible for
its assertion. Our responsibility is to express an opinion on management's assertion about the
Organization's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion about
compliance with the specified requirements is fairly stated, in all material respects. An examination
involves performing procedures to obtain evidence about management's assertion. The nature,
timing, and extent of the procedures selected depend on our judgment, including an assessment of the
risks of material misstatement of management's assertion, whether due to fraud or error. We believe
that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our
opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination on the Organization's compliance with the
specified requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the provisions
of Section 4 of the Agreement regarding the attached 2022 Expenditures Report for the year ended
June 30, 2022 is fairly stated, in all material respects.
This report is intended solely for the information and use of Visit Newport Beach, Inc. and the City
of Newport Beach and is not intended to be and should not be used by anyone other than these
specified parties.
ITT t 10hn La
KMJ Corbin & Company LLP
Irvine, California
September 19, 2022
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmlpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
DO
VISIT
EWP RT
BEACH
CALIFORNIA
ManagemenI Statement regarding ComPliance With Certain Provisions of the Agreement
Between the City of Newport Beach and Visit Newport beach Inc. for Tourism Promotion,
Branding, and Marketing Services
e, as members of management of Visit Newport Beach Inc. (the "Organization' }, are responsible
for complying with the provisions of Section 4 of the Agreement Between the City ofNewport Beach
and Visit Newport Beach Inc. (collectively, the "Parties") for Tourism Promotion, Branding, and
laxketing Services (the "Agreement") in that funds received by the Organization pursuant to this
Agreement were expended in accordance with this Agreement. We are responsible for establishing
and maintaining effective intorttal controls over compliance with the provisions of Section, 4 of the
Agreement We have performed an evaluation of the Organization's compliance with the provisions
of Section 4 of the Agreement regarding funds expended during the year ended June 30, 2022, as
summarized in the attached 2022 Expenditures Deport. Based on this evaluation, we assert that the
Organization was in compliance with the provisions of Section 4 of the Agreement as described
below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise a
program to market and promote the Newport Beach brand and to promote tourism in, and serve the
needs of, visitors to Newport Beach as well as increase the amount of TOT collected through their
promotional activities ('Services'). Subject to the foregoing sentence, the Services shall, at a
minimum, include the following: (a) the maintenance of suitable office space and the employment
Of competent Personnel to carry out the promotional, branding and marketing duties; (b) the
preparation of brochures, publications, guides, on-line promotions, social network efforts, and other
marketing materials and information that inform prospective tourists and visitors of the recreational
activities, cultural assets, shopping and dining opportunities, night-time stay opportunitieq, and
natural beauty of Newport Beach; (c) the dissemination of information described in this section by
way of the media, direct mail, handouts, social networking, websites, smart phone applications, or
outer means of distribution; and (d) the development and irnpiementation of specific marketing
programs designed to increase awareness of the Newport Beach brand and to increase business and
visitor trade in Newport Beach; and (e) any additional Services when proposed by the City which are
consistent with the promotion of tourism and the Newport Beach brand which are mutually agreeable
and acoeptable to the Parties."
Visit Nevi Beach Inc,
13y
i3y
T.il e *,,,,
Vice Pre\WZnt of Finance
1600 Newport Centel- Drive, Sulu! 12Q, NV Iwport Roach, CA 926tx0
A
VISIT NEWPORT BEACH, INC.
2022 Expenditures Report
July 1, 2021 -
June 30, 2022
2022 Expenses
General and Administrative Expenses
Operating Expenses
64125 - Computer Software (non-deprec)
6,555
64130 - Voice and Data - Office
84
64145 - Shipping Charges
224
64150 - Bank Fees
160
64160 - Membership Dues
29,983
64170 - Team Meetings
1,861
Total Operating Expenses
38,867
Insurance
63100 - General Liability Insurance
1,438
63300 - Board of Directors Insurance
1,769
Total Insurance
3,207
Professional Fees
64203 - Recruiting Fees
3,265
64207 - Bloggers
40,624
64201 - Audit Fees
4,500
64202 - Tax Preparation Fees
1,500
Total Professional Fees
49,889
Miscellaneous Expense
64350- Interest Expense
3,816
Total Miscellaneous Expense
3,816
65550 - Travel Expense
24
Total Travel Expense
24
Total General and Administrative
95,803
Advertising Expenses
66101 - Advertising - Purchased
1,376,380
66102 - Advertising - Local Events
20,463
66104 - Advertising Tracking Media
10,950
66121 - Promotional Gift Cards
165
66123 - Promotional Client Gifts
268
66202 - Ad Production
271,141
66203 - Creative Design/Development
111,350
66205 - Photography/Video Production
188,796
66212 - Community Sponsorships
153,000
67101 - Research
77,968
67102 - Christmas Boat Parade
199,083
Total Advertising Expenses
2,409,564
Marketing Expenses
Community Relations
67103 - Community Partner Events
45,710
67105 - Awards
1,830
67107 - Promotional Items
18,658
Total Community Relations
66,198
Marketing Collateral
67309 - Marketing Plan
4,927
67311 - Collateral Production Expenses
750
67312 - Collateral Distribution
4,000
Total Marketing Collateral
9,677
Digital Marketing
67501 - Social Media
61,559
67502 - Website Maintenance
114,221
67503 - Online Search Advertising
106,461
67504 - Digital Advertising
7,200
67511 - Digital Lifestyle Channel Production
3,500
66211 - CRM Maintenance
19,729
Total Digital Marketing
312,670
Communications/Public Relations
67601 - Media Services
81,214
67602 - Media FAM Tours
14,535
67605 - Media Opportunities
40,305
67607 - Media Relations
1,093
Total Communications/Public Relations
137,147
Total Marketing Expenses
525,692
International Marketing Initiatives
67404 - International Trade Shows
2,500
67405 - International Airfare
396
67406 - International Accommodations
870
67407 - International Meals
72
67408 - International Transportation Costs
117
67409 - International Other Travel Costs
83
67410 - International Business Meals/Entertainment
16
67412 - International Brand Events
33,382
Total International Marketing Initiatives
37,436
NB&Company Fees
B 68001 - NB&Co Fees
1,698,743
Total NB&Company Fees
1,698,743
Total Expenses 4,767,238
Other Expenditures:
Fixed asset additions capitalized
Website development costs capitalized -
Change in other prepaid expenses and current
liabilities, net 141,218
141,218
$ 4,908,456
NOTES:
A Included in this account are expenditures for or contributions to special events and not -for -profit
organizations in Newport Beach as follows:
Vendor Event Amount
City of Newport Beach Arts Sponsorship 150,000
$ 150,000
B Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries/Benefits $ 1,085,958
Marketing Expenses $ 104,653
G&A Overhead $ 508,132
$ 1,698,743
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION
For The Years Ended June 30, 2022 and 2021
with
INDEPENDENT AUDITORS' REPORT THEREON
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-19
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source ................................... 20
Schedule 11— Statement of Activities by Funding Source ............................................... 21
KJ� �j J I Corbin &
lvl Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-profit
organization) (the "Organization"), which comprise the statements of financial position as of June 30,
2022 and 2021, and the related statements of activities and cash flows for the years then ended, and
the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Organization as of June 30, 2022 and 2021, and the changes in its net assets
and its cash flows for the years then ended in accordance with accounting principles generally accepted
in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America ("GAAS"). Our responsibilities under those standards are further described in the Auditors'
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Organization and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audits. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Related -Party Transactions
As discussed in Note 9 to the financial statements, the Organization has significant transactions with a
related non-profit organization. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Organization's ability to
continue as a going concern for one year after the date that the financial statements are issued.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmipartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect
a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 Organization's internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Organization's ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Supplemental Information
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a
whole. The supplemental information contained in Schedules I and II on pages 20-21 is presented for
purposes of additional analysis and is not a required part of the 2022 financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the 2022 financial statements. The information
has been subjected to the auditing procedures applied in the audit of the 2022 financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the 2022 financial statements or the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated in all material
respects in relation to the 2022 financial statements as a whole.
i ,M j- Winn, t h._P
KMJ Corbin & Company LLP
Irvine, California
September 19, 2022
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 4,792,516 $ 5,918,574
Short-term investments 2,952,978 -
Prepaid expenses and other current assets 425,427 182,475
Total current assets 8,170,921 6,101,049
Property and equipment, net 29,520 19,541
Deposits and other assets 9,619 9,619
$ 8,210,060 $ 6,130.209
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 363,348 $ 100,796
Related party payables, net 2,441 17,611
Accrued expenses 26,451 41,041
Accrued payroll and related expenses 72,529 74,727
Group booking incentive reserve 55,620 6,500
Loan payable, current portion - 3,256
Total current liabilities 520,389 243,931
Deferred rent, net of current portion - 3,071
Loan payable, net of current portion - 146,024
Total liabilities 520,389 393,026
Commitments and contingencies
Net assets without donor restrictions 7,689,671 5,737,183
$ 8,210,060 $ 6,130.209
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2022 2021
Support and revenues:
Service fee revenues $ 9,445,421 $ 4,757,188
Interest income 2,272 3,677
Other income - 22,800
Total support and revenues 9,447,693 4,783,665
Expenses:
Marketing (including $1,806,743 and $1,248,512
to Newport Beach & Company during 2022
and 2021, respectively — see Note 9) 5,997,635 2,310,049
Salaries and benefits 1,121,805 799,805
Other 363,044 290,796
Depreciation and amortization 12,721 108,854
Total expenses 7,495,205 3,509,504
Change in net assets without donor restrictions 1,952,488 1,274,161
Net assets without donor restrictions, beginning of year 5,737,183 4,463,022
Net assets without donor restrictions, end of year $ 7,689,671 S 5.737.183
See accompanying notes to financial statements
4
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2022
2021
Cash flows from operating activities:
Change in net assets without donor restrictions
$ 1,952,488
$ 1,274,161
Adjustments to reconcile change in net assets without
donor restrictions to net cash provided by operating
activities:
Depreciation and amortization
12,721
108,854
Loss on disposals of property and equipment
1,627
-
Accrued interest income
(1,498)
887
Changes in operating assets and liabilities:
Accounts receivable
-
145,623
Related -parry receivables/payables, net
(15,170)
50,350
Prepaid expenses and other current assets
(242,952)
15,210
Accounts payable
262,552
9,445
Accrued expenses
(14,590)
7,701
Accrued payroll and related expenses
(2,198)
47,217
Group booking incentive reserve
49,120
(24,800)
Deferred rent
(3,071)
(19,052)
Net cash provided by operating activities
1,999,029
1,615,596
Cash flows from investing activities:
Purchases of property and equipment
(24,327)
-
Purchases of investments
(6,569,480)
(6,466,614)
Proceeds from sales/maturities of investments
3,618,000
9,072,000
Net cash (used in) provided by investing activities
(2,975,807)
2,605,386
Cash flows used in financing activities:
Payments on loan payable
(149,280)
(720)
Net change in cash and cash equivalents
(1,126,058)
4,220,262
Cash and cash equivalents at beginning of year
5,918,574
1,698,312
Cash and cash equivalents at end of year
$ 4,792,516
$ 5918.574
Supplemental disclosure of cash flow information:
Cash paid during the year for interest
$ 3,816
$ 4,046
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 1— ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the laws
of the State of California.
Transient Occupancy Tax("TOT")
The Organization has an agreement ("TOT Agreement") with the City of Newport Beach (the
"City") through December 31, 2024 to promote tourism and serve the needs of visitors to the City.
Under the terms of the TOT Agreement, the Organization is responsible to develop, plan, carry
out and supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to the City as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized as revenue when received.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease the
percentage of TOT paid to the Organization) as part of its once -annual budget adoption process
for any reason after notice to the Organization and an opportunity for the Organization to formally
comment on the adjustment. For the years ended June 30, 2022 and 2021, the Organization
received approximately 60% and 65%, respectively, of its service fee revenues from the City
through the TOT. The City has the right to terminate the TOT Agreement, without cause, by giving
the Organization 365 days' written notice of its intention to terminate. Should the City reduce or
stop its funding to the Organization due to the Organization's default or termination of the TOT
Agreement, the Organization's operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, and expires on January 31, 2024, pursuant to the Management District Plan, as amended
(the "Plan"). The NBTBID is funded by assessments levied on participating lodging businesses
within a specified district. The assessments are restricted for use for sales promotion and
marketing programs to market the City as a tourist, meeting and event destination as outlined in
to
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 1— ORGANIZATION, continued
the Plan. Either parry may terminate this agreement by providing the other parry ninety calendar
days' written notice prior to the effective date of termination. As the Organization is not entitled
to its share of the assessments collected until paid by the City, amounts are recognized as revenue
when received. For the years ended June 30, 2022 and 2021, the Organization received
approximately 40% and 35%, respectively, of its service fee revenues from the City through TBID
assessments.
As of June 30, 2022 and 2021, the NBTBID is represented by nine (9) hotels within the City of
Newport Beach which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the
receipts annually for the collection of the assessments and disbursements of the NBTBID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions — Net assets that are not subject to donor -imposed stipulations.
These assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions —Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
As of and for the years ended June 30, 2022 and 2021, the Organization had no net assets with
donor restrictions.
7
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, fair value of investments and the allocation of expenses
to program activities and general and administrative. Actual results may differ from those
estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash and cash
equivalent balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. At June 30, 2022,
the Organization had approximately $4,557,000 of uninsured cash and cash equivalent balances.
The Organization periodically reviews the quality of the financial institutions it has deposits with
to minimize risk of loss. To date, no losses have been incurred.
Investments and Fair Value Measurements
Investments and cash equivalents consist of U.S. Treasury Bills which are carried at amortized
cost, which approximates fair value.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal market,
the most advantageous market for the asset or liability, in an orderly transaction between market
participants on the measurement date. Accounting guidance establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs in priority that
may be used to measure fair value:
Level 1—Quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
The fair value of the Organization's U.S. Treasury Bills are based partially upon quoted prices in
markets that are not active or inputs which are observable, either directly or indirectly, for
substantially the full term of the assets. These instruments have been classified within Level 2 of
the valuation hierarchy.
As of June 30, 2022, the Organization's investments measured at fair value on a recurring basis
were as follows:
Short-term investments:
U.S. Treasury Bills
June 30. 2022
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
0
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Website Development Costs
The Organization accounts for the costs of developing its mobile apps and websites by capitalizing
the costs during the application development stage when it is probable that the project will be
completed and the property will be used to perform the function intended. Website development
costs are amortized on a straight-line basis over their estimated useful lives when completed, which
are typically the earlier of approximately three years or term based on estimated disposal date. The
recoverability of website development costs is evaluated periodically, taking into account events
or circumstances that warrant revised estimates of useful lives or that indicate that impairment
exists.
For the years ended June 30, 2022 and 2021, the Organization capitalized website development
costs of $0 and $0, respectively.
For the years ended June 30, 2022 and 2021, the Organization recorded amortization expense on
website development costs totaling $0 and $96,628, respectively.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2022 and 2021, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Group Booking Incentive
The Organization has established an incentive program for businesses by paying for certain costs
of conferences and group meetings held in Newport Beach hotels in order to attract businesses and
groups to the City. Costs are considered incurred upon the reservation of the hotel for future
meetings. As of June 30, 2022 and 2021, group booking accruals were $55,620 and $6,500,
respectively.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other local
businesses involved in the tourism industry in Newport Beach. All businesses visited are also
sponsors of the Organization. Many of the Organization's sponsors contribute materials, such as
meals and rooms, in connection with this program. During the years ended June 30, 2022 and
2021, the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
contributions as they do not meet the required criteria.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2022 and 2021,
the Organization had no unrelated business income.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2022 and 2021, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. federal, state or local income tax examinations by
tax authorities for years before 2018.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting
Standards Update ("ASU") 2016-02, Leases (Topic 842), which requires the lease rights and
obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. ASU 2016-02, as
amended, is effective for reporting periods beginning after December 15, 2021. While still
evaluating this update, the Organization expects the adoption of this update to have a material
effect on its financial condition due to the recognition of the lease rights and obligations as assets
and liabilities. The Organization does not expect this update to have a material effect on its results
of operations and cash flows.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In September 2020, the FASB issued ASU 2020-07, Presentation and Disclosures by Not -for -
Profit Entities for Contributed Nonfinancial Assets (Topic 958), which requires the Organization
to change its financial statement presentation and disclosure of contributed nonfinancial assets, or
gifts -in -kind. ASU 2020-07 defines gifts -in -kind as contributed nonfinancial assets donations
made for goods or services the Organization would purchase in the normal course of business.
Gifts -in -kind of tangible property include items like operating facilities, utilities, office furniture,
and supplies provided to the Organization; items donated to the Organization to be auctioned
through charitable events; and items used in program activities, such as medical supplies, building
supplies, appliances, and fixtures. Intangible gifts -in -kind include items like copyrights, patents,
and royalties; specialized volunteer services, such as those from nurses for medical organizations
or project managers and builders for construction projects; and expertise, such as accounting, legal,
and consulting services. The Organization adopted ASU 2020-07 during the current year with no
significant impact on its financial statements.
Subsequent Events
The Organization has evaluated subsequent events through September 19, 2022, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2022, the Organization has $7,745,494 of financial assets available within one year of
the statement of financial position date to meet cash needs for general expenditures consisting of
cash and cash equivalents of $4,792,516 and short-term investments of $2,952,978. None of the
financial assets are subject to donor or other contractual restrictions that make them unavailable
for general expenditures within one year of the statement of financial position. The Organization
has a goal to maintain financial assets, which consist of cash, cash equivalents and short-term
investments, on hand to meet 180 days of operating expenses, which are, on average,
approximately $395,000 per month. The Organization has a policy to structure its financial assets
to be available as its general expenditures, liabilities, and other obligations come due. The
Organization invests cash in excess of daily requirements in various short-term treasury
instruments.
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 3 — LIQUIDITY AND AVAILABILITY, continued
Funding for the Organization is dependent on the hotel room nights booked in certain Newport
Beach hotels each year and the subsequent portion of the TOT that is allocated through the City to
the Organization and the portion of the TBID assessments that are sent to the Organization from
the TBID participants. Annual revenue fluctuates depending on annual visitors to Newport Beach.
As a result, the Organization closely monitors the monthly projected and received revenue to
determine if any change needs to be made to budgeted annual expenditures.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2022 2021
Leasehold improvements $ - $ 38,468
Computer equipment 21,213 40,516
Office furniture and fixtures 121,159 136,812
142,372 215,796
Less accumulated depreciation and amortization (112,852) tl96,255)
$ 29,520 $ 19.541
For the years ended June 30, 2022 and 2021, the Organization recorded depreciation expense on
property and equipment totaling $12,721 and $12,226, respectively.
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2022 and 2021 are as follows:
Salaries and benefits:
Salaries
Payroll taxes and employee benefits
Total salaries and benefits
Other expense:
Marketing
Office lease
Repairs and maintenance
Insurance
Office supplies
Equipment and equipment rental
Postage and other dues and fees
Meeting and education
Professional fees and services
Bad debt
Interest
Depreciation and amortization
Loss on property and equipment disposals
Travel and related
Total functional expenses
2022
Program General and 2021
$ 650,628 $
177,045
$ 827,673
$ 585,598
241,436
52,696
294,132
214,207
892,064
229,741
1,121,805
799,805
5,510,576
487,059
5,997,635
2,310,049
89,512
29,837
119,349
118,143
7,225
28,076
35,301
18,683
-
6,414
6,414
7,651
-
6,245
6,245
3,518
14,355
27,152
41,507
30,829
61,165
4,229
65,394
63,243
5,000
30,691
35,691
16,347
-
30,596
30,596
26,304
-
-
-
557
-
3,816
3,816
4,046
-
12,721
12,721
108,854
-
1,627
1,627
-
17,104
-
17,104
1,475
$ 6, 997,001 $
998,204
$ 7.495.205
$ 3,509,504
The Organization incurred expenses related to program activities totaling approximately
$2,854,000 for the year ended June 30, 2021.
15
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 6 — LOAN AGREEMENT
On June 3, 2020, the Organization entered into an Economic Injury Disaster Loan (the "Loan")
administered by the U.S. Small Business Administration. The loan had an original principal
balance of $150,000, bore interest at 2.75% per annum and was set to mature on June 3, 2050. The
loan required monthly payments beginning in June 2021. Payments were first applied to interest
accrued and then principal. The amount borrowed under the Loan was guaranteed by substantially
all of the Organization's assets. The Organization used all the proceeds of this Loan solely as
working capital to alleviate economic injury caused by COVID-19. The Loan contained customary
events of default, and the occurrence of an event of default may result in a claim for the immediate
repayment of all amounts outstanding under the Loan. The Organization paid the loan in full during
the year ended June 30, 2022.
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022, and the Organization's allocated portion of rent, as
amended, is payable between $8,359 and $10,423 per month. As a result of the fourth amendment
to this lease, the Organization assigned its rights to Newport Beach & Company ("NB & Co."), a
related party. Under the terms of this lease, this assignment does not relieve the Organization of
its lease obligations. As a result, the Organization continues to be liable for future rent payments.
The facility lease contains a five-year extension option at the end of the lease term. In May 2022,
the Organization entered into a lease amendment for a smaller lease space. Under the amended
lease, allocated rent is payable at approximately $17,000 per month and expires in September
2029.
Allocated rent expense incurred by the Organization under this operating lease was approximately
$119,000 and $118,000 for the years ended June 30, 2022 and 2021, respectively, and is included
in other expenses. Such amounts are net of the amounts paid by the related party pursuant to the
Agreement disclosed in Note 9.
16
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Future minimum payments due on the Organization's allocated portion of the non -cancelable
facility lease commitment in excess of one year are as follows:
Years Ending
June 30,
2023
$ 148,000
2024
205,000
2025
213,000
2026
220,000
2027
228,000
thereafter
540,000
$ 1,554.000
Commitments
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $820 to $9,000 per month over various
terms with 24 months or less remaining at June 30, 2022. From these commitments, the
Organization incurred approximately $502,000 and $253,000 of expenses for the years ended June
30, 2022 and 2021, respectively, which are recorded in marketing expenses in the accompanying
statements of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on June 1,
2014 through December 31, 2024, to the City to be spent on programs or activities that benefit the
public, which is recorded in marketing expenses for the years ended June 30, 2022 and 2021. Due
to the rights of termination per the agreement, these commitments are considered due each June
and December.
17
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. Pursuant to the TOT Agreement, the Organization also indemnifies
the City and all of its related boards, councils, officers, employees, and volunteers from claims
related to the conduct of the Organization or any of its officers, employees, or associated
individuals. In connection with its facility lease, the Organization has indemnified its lessor for
certain claims arising from the use of the facilities. The duration of the guarantees and indemnities
varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not
provide for any limitation of the maximum potential future payments the Organization could be
obligated to make. Historically, the Organization has not been obligated nor incurred any
payments for these obligations and, therefore, no liabilities have been recorded for these
indemnities and guarantees in the accompanying statements of financial position.
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan (the "Plan") covering all eligible employees. The
Plan provides for voluntary employer contributions. The total Plan expense during the years ended
June 30, 2022 and 2021 was approximately $73,000 and $28,000, respectively, and is included in
salaries and benefit expenses in the accompanying statements of activities.
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2022 and 2021, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, NB & Co., specializes in marketing
and promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB & Co.
as an exclusive provider of services that the Organization shall need to carry out its mission and
obligations to the City. In consideration for these services, the Organization agreed to pay NB &
Co. annual fees totaling $108,000 for the years ended June 30, 2022 and 2021. The Organization
has also agreed to reimburse NB & Co. for all reasonable expenses incurred by it in carrying out
its duties to the Organization, including rent and related facility costs, payroll and related benefits,
and other direct marketing costs. For the years ended June 30, 2022 and 2021, the Organization
incurred $1,698,743 and $1,140,512, respectively, from NB & Co. for these costs, which are
recorded in marketing expenses in the accompanying statements of activities. NB & Co.'s costs
for the years ended June 30, 2022 and 2021 were broken out as follows: $104,653 and $33,305,
respectively, of direct marketing, $1,085,958 and $770,095, respectively, of salaries and benefits,
and $508,132 and $337,112, respectively, of other (including rent and related facility costs). The
Agreement, as amended, expires on June 30, 2024.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 9 — RELATED -PARTY TRANSACTIONS, continued
As of June 30, 2022 and 2021, the Organization has net related -party payables of $2,441 and
$17,611, respectively, in the accompanying statements of financial position. These amounts do
not bear interest, are not collateralized, and have no stated repayment terms.
19
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2022
Current assets:
Cash and cash equivalents
Short-term investments
Prepaid expenses and other
current assets
Total current assets
Property and equipment, net
Deposits and other assets
Current liabilities:
TOT* TBID
$ 2,545,363 $ 2,247,153
1,801,633 1,151,345
317,770 107,657
4,664,766 3,506,155
5,527 23,993
9,619 -
$ 4.679.912 $ 3.530.148
Accounts payable $ 229,390 $ 133,958
Related -party payables, net 1,487 954
Accrued expenses 6,000 20,451
Accrued payroll and related
expenses - 72,529
Group booking incentive reserve - 55,620
Total current liabilities 236,877 283,512
Net assets without donor restrictions 4.443.035 3.246.636
$ 4.679.912 $ 3.530.148
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 4,792,516
- 2,952,978
425,427
- 8,170,921
- 29,520
- 9,619
$ $ 8.210.060
$ - $ 363,348
- 2,441
- 26,451
- 72,529
- 55,620
- 520,389
- 7,689,671
20
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2022
Support and revenues:
Service fee revenues
Interest income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
Other
Depreciation and amortization
Total expenses
Change in net assets without donor
restrictions
Net assets, beginning of year
Net assets, end of year
TOT* TBID
$ 5,676,588 $ 3,768,833
1,427 845
5,678,015 3,769,678
4,712,080 1,285,555
- 1,121,805
55,154 307,890
5.511 7.210
4,772,745 2,722,460
905,270 1,047,218
3,537,765 2,199,418
$ 4.443.035 $ 3.246.636
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 9,445,421
- 2,272
9,447,693
5,997,635
1,121,805
363,044
12.721
7,495,205
1,952,488
5,737,183
21
KJ� �j J I Corbin &
lvl Company
Business Advisors Tax and Audit
September 19, 2022
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Visit Newport Beach Inc. (the "Organization") as of and
for the year ended June 30, 2022, and have issued our report thereon dated September 19, 2022.
Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 26, 2022, our responsibility, as described by
professional standards, is to form and express an opinion about whether the financial statements that
have been prepared by management with your oversight are presented fairly, in all material respects,
in accordance with accounting principles generally accepted in the United States of America. Our audit
of the financial statements does not relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Organization's internal control
over financial reporting. Accordingly, as part of our audits, we considered the internal control of the
Organization solely for the purpose of determining our audit procedures and not to provide any
assurance concerning such internal control.
In conjunction with the annual audit, we also performed an examination of management's assertion
included in the Management Statement Regarding Compliance with Certain Provisions of the
Agreement Between the City of Newport Beach and the Organization for Tourism Promotion,
Branding, and Marketing Services (the "Agreement"), that the Organization complied with the
provisions in Section 4 of the Agreement regarding the 2022 Expenditures Report, summarizing the
expenditures of funds received pursuant to the Agreement during the year ended June 30, 2022.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
September 19, 2022
Page 2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant
ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related notes,
a nonattest service. With respect to any nonattest service we performed, the Organization's
management has been responsible for (a) making all management decisions and performing all
management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the
adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the
services performed; and (e) establishing and maintaining internal controls, including monitoring
ongoing activities.
Audit Focus Areas Identified
We have identified the following audit focus areas:
• Management override of internal controls was considered a focus area as this is a pervasive
risk that could affect many audit areas and could affect amounts reported in the financial
statements.
• Improper revenue recognition was considered a focus area due to the inherent risk in revenue
recognition.
• Related -party transactions was considered a focus area due to the volume of related -party
transactions, in addition to the disclosure requirements related to such transactions.
• Support for expenses was considered a focus area due to the volume of expenses and the need
to verify existence and completeness of expenses, along with accuracy and proper
classification.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of
the significant accounting policies adopted by the Organization is included in Note 2 to the financial
statements. Other than the adoption of ASU 2020-07, Presentation and Disclosures by Not -for -Profit
Entities for Contributed Nonfinancial Assets (Topic 958), there have been no initial selection of
accounting policies and no changes in significant accounting policies or their application during the
year ended June 30, 2022. No matters have come to our attention that would require us, under
professional standards, to inform you about (1) the methods used to account for significant unusual
transactions and (2) the effect of significant accounting policies in controversial or emerging areas for
which there is a lack of authoritative guidance or consensus.
September 19, 2022
Page 3
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's current judgments. Those judgments are normally based on knowledge and
experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the financial statements and because
of the possibility that future events affecting them may differ markedly from management's current
judgments. Significant estimates made by the Organization's management include, but are not limited
to, fair value of investments and the allocation of expenses to program activities and general and
administrative.
• Management's estimate of the fair value of investments is based on the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal, or
in the absence of a principal market, the most advantageous market for the asset or liability, in
an orderly transaction between market participants on the measurement date.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose and nature of the expenditures incurred during
the year.
We evaluated the key factors and assumptions used to develop the estimates and determined that they
are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the
Organization's financial statements relate to related -party transactions.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you
significant unusual transactions identified during our audit. There were no significant unusual
transactions identified as a result of our audit procedures that were brought to the attention of
management.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
September 19, 2022
Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and
likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require us
to also communicate the effect of uncorrected misstatements related to prior periods on the relevant
classes of transactions, account balances or disclosures, and the financial statements as a whole. There
were no uncorrected misstatements during the year ended June 30, 2022.
In addition, professional standards require us to communicate to you all corrected misstatements that
were brought to the attention of management as a result of our audit procedures. There were no
corrected misstatements that we identified as a result of our audit procedures that were brought to the
attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to the Organization's financial statements or the auditors' report.
No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor's Report
For purposes of this letter, professional standards require that we communicate any circumstances that
affect the form and content of our auditors' report. We have not identified or obtained information that
affect the form and content of the Auditors' Report.
Representations Requested from Management
We have requested certain written representations from management, which are included in a separate
letter dated September 19, 2022.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no consultations
with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards, operating
and regulatory conditions affecting the Organization, and operational plans and strategies that may
affect the risks of material misstatement. None of the matters discussed resulted in a condition to our
retention as the Organization's auditors.
September 19, 2022
Page 5
Supplemental Information
The supplementary information contained in Schedules I and II of the financial statements is presented
for purposes of additional analysis and is not a required part of the 2022 financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the 2022 financial statements. The information
has been subjected to the auditing procedures applied in the audit of the 2022 financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the 2022 financial statements or the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America.
This report is intended solely for the information and use of the Board of Directors and management
of the Organization, and is not intended to be and should not be used by anyone other than these
specified parties.
Very truly yours,
ICMJ' Ck6-'4, t Cn LLP
KMJ Corbin & Company LLP
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
with
INDEPENDENT AUDITORS' REPORT THEREON
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-15
KJ� �j J I Corbin &
lvl Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Newport Beach & Company
We have audited the accompanying financial statements of Newport Beach & Company (a non-
profit organization) (the "Organization"), which comprise the statements of financial position as
of June 30, 2022 and 2021, and the related statements of activities and cash flows for the years
then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Organization as of June 30, 2022 and 2021, and the changes in its net
assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United
States of America ("GAAS"). Our responsibilities under those standards are further described in
the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the Organization and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audits. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Related -Party Transactions
As discussed in Note 9 to the financial statements, the Organization has significant transactions
with a related non-profit organization. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the
Organization's ability to continue as a going concern for one year after the date that the financial
statements are issued.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmipartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect
a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 Organization's internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Organization's ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
I-MJ' C.kk,;,,4, t Com" LL-P
KMJ Corbin & Company LLP
Irvine, California
September 19, 2022
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2022 2021
ASSETS
Current assets:
Cash $ 140,707 $ 219,454
Accounts receivable 16,381 12,891
Related -party receivables, net 2,441 17,611
Prepaid expenses and other current assets 107,575 76,649
Total current assets 267,104 326,605
Property and equipment, net 9,185 38,142
Other 75,000 -
$ 351,289 $ 364,747
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 12,472 $ 6,049
Accrued expenses 58,664 131,671
Accrued payroll and related expenses 139,009 123,767
Current portion of deferred compensation 25,000 -
Loan payable, current portion - 1,009
Total current liabilities 235,145 262,496
Deferred rent, net of current portion - 14,229
Deferred compensation, net of current portion 75,000 -
Loan payable, net of current portion - 108,441
Total liabilities 310,145 385,166
Commitments and contingencies
Net assets without donor restrictions 41,144 (20,419)
$ 351,289 $ 364,747
See accompanying notes to financial statements
3
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2022 2021
Support and revenues:
Service fees from related party $ 1,806,743 $ 1,248,512
Community marketing income 153,765 227,621
Paycheck protection program grant 109,450 227,527
Total support and revenues 2,069,958 1,703,660
Expenses:
Marketing 168,354 111,740
Salaries and benefits 1,172,769 982,803
Other 647,001 532,809
Depreciation 20,271 26,701
Total expenses 2,008,395 1,654,053
Increase in net assets without donor restrictions 61,563 49,607
Net assets without donor restrictions, beginning of year (20,419) (70,026)
Net assets without donor restrictions, end of year $ 41,144 $ (20.4199
See accompanying notes to financial statements
4
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
Cash flows from operating activities:
Change in net assets without donor restrictions
Adjustments to reconcile change in net assets without
donor restrictions to net cash (used in) provided by
operating activities:
Depreciation
Forgiveness on PPP loan
Loss on disposals of property and equipment
Changes in operating assets and liabilities:
Accounts receivable
Related -party receivables/payables, net
Prepaid expenses and other current assets and other
Accounts payable
Accrued expenses
Accrued payroll and related expenses
Deferred compensation
Deferred rent
Net cash (used in) provided by operating activities
Cash flows used in investing activities:
Purchase of property and equipment
Cash flows provided by financing activities:
Proceeds from loan
Net change in cash
Cash at beginning of year
Cash at end of year
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2022 2021
$ 61,563 $ 49,607
20,271 26,701
(109,450) -
14,038 -
(3,490)
30,862
16,185
(50,350)
(105,926)
(43,977)
6,423
(122)
(74,022)
59,149
15,242
72,106
100,000
(20,000)
(14,229)
(86,662)
(73,395) 37,314
(5,352)
- 109,450
(78,747) 146,764
219,454 72,690
$ 140,707 $ 219.454
See accompanying notes to financial statements
5
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 1— ORGANIZATION
Nature of Operations
Newport Beach & Company (the "Organization") is a non-profit organization formed under the
laws of the State of California in 2013. The Organization specializes in marketing and promotion
services related to enhancing the economic development for the City of Newport Beach (the
"City"). The Organization currently has agreements with the City to manage its public access
television channel. By embracing a variety of neighborhoods, businesses and individual unique
voices into a complementary story, the Organization seeks to strengthen all of its partners, drive
new revenue to the City and enhance the City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City provides management and
consulting services in support of NBTV. Such services include production, administrative,
and sponsorship services. This agreement expires on April 30, 2023.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions —Net assets that are not subject to donor -imposed stipulations. These
assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions - Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
to
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
As of and for the years ended June 30, 2022 and 2021, the Organization had no net assets with donor
restrictions.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the collectability of receivables and the allocation of
expenses to program activities and general and administrative. Actual results may differ from
those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation ("FDIC") up to $250,000 per institution. At June 30, 2022, the Organization had no
uninsured balances. The Organization periodically reviews the quality of the financial institutions
it has deposits with to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. At June 30, 2022 and 2021, the Organization considers its accounts
receivable to be fully collectible and accordingly did not record an allowance for doubtful
accounts. As of June 30, 2022 and 2021, two customers accounted for approximately 98% and
99%, respectively, of the Organization's total accounts receivable balance.
VA
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Deferred Compensation
Deferred compensation represents a commitment to make annual $25,000 annuity payments
through 2026 to a member of the Organization's management. As of June 30, 2022, $100,000 was
due. Payments due within one year have been classified under prepaid expenses and other current
assets and current liabilities; all other amounts have been classified as non -current assets and non-
current liabilities.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2022 and 2021, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
During the years ended June 30, 2022 and 2021, the Organization did not have significant
contributed materials and services.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2022 and 2021,
the Organization had no unrelated business income. The Organization annually evaluates tax
positions as part of the preparation of its exempt tax return. This process includes an analysis of
whether tax positions the Organization takes with regard to a particular item of income or
deduction would meet the definition of an uncertain tax position under current accounting
guidance. The Organization believes its tax positions are appropriate based on current facts and
circumstances. The Organization's policy is to recognize interest accrued related to unrecognized
tax benefits in interest expense and penalties in operating expenses. At June 30, 2022 and 2021,
the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to income tax examinations by tax authorities for years
before 2018.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
0
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting
Standards Update ("ASU") 2016-02, Leases (Topic 842), which requires the lease rights and
obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. ASU 2016-02, as
amended, is effective for reporting periods beginning after December 15, 2021. While still
evaluating this update, the Organization expects the adoption of this update to have a material
effect on its financial condition due to the recognition of the lease rights and obligations as assets
and liabilities. The Organization does not expect this update to have a material effect on its results
of operations and cash flows.
In September 2020, the FASB issued ASU 2020-07, Presentation and Disclosures by Not -for -
Profit Entities for Contributed Nonfinancial Assets (Topic 958), which requires the Organization
to change its financial statement presentation and disclosure of contributed nonfinancial assets, or
gifts -in -kind. ASU 2020-07 defines gifts -in -kind as contributed nonfinancial assets donations
made for goods or services the Organization would purchase in the normal course of business.
Gifts -in -kind of tangible property include items like operating facilities, utilities, office furniture,
and supplies provided to the Organization; items donated to the Organization to be auctioned
through charitable events; and items used in program activities, such as medical supplies, building
supplies, appliances, and fixtures. Intangible gifts -in -kind include items like copyrights, patents,
and royalties; specialized volunteer services, such as those from nurses for medical organizations
or project managers and builders for construction projects; and expertise, such as accounting, legal,
and consulting services. The Organization adopted ASU 2020-07 during the current year with no
significant impact on its financial statements.
Subsequent Events
The Organization has evaluated subsequent events through September 19, 2022, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
10
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2022, the Organization has $157,088 of financial assets available within one year of
the statement of financial position date to meet cash needs for general expenditures consisting of
cash of $140,707 and accounts receivable of $16,381. None of the financial assets are subject to
donor or other contractual restrictions that make them unavailable for general expenditures within
one year of the statement of financial position. The Organization has a policy to structure its
financial assets to be available as its general expenditures, liabilities, and other obligations come
due.
Funding for the Organization is dependent on funding received from a related party (see Note 9)
and revenue generated through marketing efforts. As a result, the Organization closely monitors
the monthly projected and received revenue to determine if any changes need to be made to
budgeted annual expenditures.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
413011N
Leasehold improvements $ 7,614
Computer equipment 84,979
Office furniture and fixtures 26,351
118,944
Less accumulated depreciation and amortization (109,759)
$ 9,185
2021
$ 79,990
126,456
81,409
287,855
(249,713)
$ 38.142
11
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2022 and 2021 are as follows:
2022
Program General and 2021
Activities Administrative Total Total
(Summarized)
Salaries and benefits:
Salaries $
703,745 $
204,111
$ 907,856 $
781,377
Payroll taxes and employee benefits
180,986
83,927
264,913
201,426
Total salaries and benefits
884,731
288,038
1,172,769
982,803
Other expenses:
Marketing
168,146
208
168,354
111,740
Office lease
312,376
104,125
416,501
407,304
Repairs and maintenance
2,000
38,887
40,887
21,083
Insurance
-
3,207
3,207
6,086
Office supplies
-
10,122
10,122
3,580
Equipment and equipment rental
18,537
26,099
44,636
43,318
Postage and fees
18,156
2,506
20,662
18,314
Meeting and education
4,233
31,049
35,282
5,544
Professional fees and services
-
35,967
35,967
23,117
Depreciation
-
20,271
20,271
26,701
Loss on disposals of property and equipment
-
14,038
14,038
-
Travel and related
13,072
12,627
25,699
4,463
Total functional expenses
$ 1.421.251 $ 587.144 $ 2.008.395 $ 1.654.053
The Organization incurred expenses related to program activities totaling approximately
$1,197,000 for the year ended June 30, 2021.
NOTE 6 - PAYCHECK PROTECTION PROGRAM GRANT/LOAN
In January 2021, the Organization entered into an unsecured promissory note for a loan (the
"Loan") in the principal amount of $336,997 and received cash proceeds of the same amount,
pursuant to the Paycheck Protection Program (the "PPP"), which is administered by the U.S. Small
Business Administration (the "SBA"). Under the terms of the Loan, interest accrued on the
outstanding principal at the rate of 1.0% per annum. The term of the Loan was five years, unless
sooner required in connection with an event of default under the Loan. To the extent the Loan
amount was not fully forgiven by the SBA, the Organization was obligated to make equal monthly
payments of principal and interest beginning on the earlier of. (1) the date the SBA sends the loan
forgiveness amount to the lender or (2) ten months after the covered 24-week period, until the
maturity date.
12
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 6 — PAYCHECK PROTECTION PROGRAM GRANT/LOAN, continued
The PPP provided a mechanism for forgiveness of up to the full amount borrowed. During the year
ended June 30, 2021, the Organization had used $227,527 of the proceeds for purposes consistent
with the PPP and believed that its use of this portion of the loan proceeds met the conditions for
forgiveness. Since the Organization used $227,527 of the proceeds from the PPP Loan for such
qualifying expenses before June 30, 2021, the Organization recorded this amount of the PPP Loan
proceeds as a conditional cost -reimbursed government grant in the accompanying statement of
activities for the year ended June 30, 2021 pursuant to relevant technical accounting guidance.
During the year ended June 30, 2022, the Organization received forgiveness from the SBA for the
full loan amount. Upon such forgiveness, the Organization recorded the remaining PPP loan
balance of $109,450 as a conditional cost -reimbursed government grant in the accompanying
statement of activities for the year ended June 30, 2022 pursuant to relevant technical accounting
guidance.
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022 and the Organization's allocated portion of rent, as
amended, is payable between $6,922 and $28,543 per month. As a result of the fourth amendment
to this lease, the Organization is a party to the lease originally entered into by Visit Newport Beach
Inc. ("VNB"), a related party. Under the terms of this lease, each assignee shall be deemed to
assume all lease obligations, and as a result, the Organization may be liable for future rent
payments. The facility lease contains a five-year extension option at the end of the lease term. In
May 2022, the Organization entered into a lease amendment for a smaller lease space. Under the
amended lease, allocated rent is payable at approximately $17,000 per month and expires in
September 2029.
Allocated rent expense incurred by the Organization under this operating lease was approximately
$417,000 and $407,000 for the years ended June 30, 2022 and 2021, respectively, and is included
in other expenses. Such amounts are net of the amounts paid by VNB pursuant to the Agreement
discussed in Note 9.
13
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Future minimum payments due on the Organization's allocated portion of the non -cancelable
facility lease commitment in excess of one year are as follows:
Years Ending
June 30,
2023
$ 230,000
2024
205,000
2025
213,000
2026
220,000
2027
228,000
Thereafter
540,000
$ 1,36.000
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. In connection with its facility lease, the Organization has
indemnified its lessor for certain claims arising from the use of the facilities. The duration of the
guarantees and indemnities varies, and is generally tied to the life of the agreement. These
guarantees and indemnities do not provide for any limitation of the maximum potential future
payments the Organization could be obligated to make. Historically, the Organization has not
been obligated nor incurred any payments for these obligations and, therefore, no liabilities have
been recorded for these indemnities and guarantees in the accompanying statements of financial
position.
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan (the "Plan") covering all eligible employees. The
Plan provides for voluntary employer contributions. The total Plan expense during the years ended
June 30, 2022 and 2021 was approximately $63,000 and $27,000, respectively, which is recorded
in salaries and benefits expenses in the accompanying statements of activities.
14
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2022 and 2021, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, VNB, initiates, sponsors, promotes
and carries out plans, policies and activities to attract conferences and visitors to the City. VNB
was the driving force behind the formation of the Organization. Pursuant to an Agreement for
Services ("Agreement") dated April 1, 2013, the Organization was appointed by VNB as an
exclusive provider of services that VNB requires to carry out its mission and obligations to the
City. In consideration for these services, VNB agreed to pay monthly fees totaling $108,000 for
the years ended June 30, 2022 and 2021. VNB has also agreed to reimburse the Organization for
all reasonable expenses incurred by it in carrying out its duties to VNB, including rent and related
facility costs, payroll and related benefits, and other direct marketing costs. For the years ended
June 30, 2022 and 2021, the Organization billed $1,698,743 and $1,140,512, respectively, to VNB
for these fees and costs, which are recorded as service fees from related party in the accompanying
statements of activities. The Agreement, as amended, expires on June 30, 2024.
As of June 30, 2022 and 2021, the Organization has net related -party receivables of $2,441 and
$17,611, respectively, in the accompanying statements of financial position. These amounts do
not bear interest, are not collateralized and have no stated repayment terms.
15
KMJ1Corbin &
Company
Business Advisors Tax and Audit
September 19, 2022
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Newport Beach & Company (the "Organization") as
of and for the year ended June 30, 2022, and have issued our report thereon dated September 19,
2022. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 26, 2022 our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in accordance with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, as part of our audit, we
considered the internal control of the Organization solely for the purpose of determining our
audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Newport Beach & Company
September 19, 2022
Page 2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the
Organization's management has been responsible for (a) making all management decisions and
performing all management functions; (b) assigning a competent individual to oversee the
services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting
responsibility for the results of the services performed; and (e) establishing and maintaining
internal controls, including monitoring ongoing activities.
Audit Focus Areas Identified
We have identified the following audit focus areas:
• Management override of internal controls was considered a focus area as this is a
pervasive risk that could affect many audit areas and could affect amounts reported in the
financial statements.
• Improper revenue recognition was considered a focus area due to the inherent risk in
revenue recognition.
• Related -party transactions was considered a focus area due to the volume of related -party
transactions, in addition to the disclosure requirements related to such transactions.
• Support for expenses was considered a focus area due to the volume of expenses and the
need to verify existence and completeness of expenses, along with accuracy and proper
classification.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU 2020-07, Presentation and Disclosures by
Not -for -Profit Entities for Contributed Nonfinancial Assets (Topic 958), there have been no
initial selection of accounting policies and no changes in significant accounting policies or their
Newport Beach & Company
September 19, 2022
Page 3
application during the year ended June 30, 2022. No matters have come to our attention that
would require us, under professional standards, to inform you about (1) the methods used to
account for significant unusual transactions and (2) the effect of significant accounting policies
in controversial or emerging areas for which there is a lack of authoritative guidance or
consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's current judgments. Those judgments are normally based on
knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
markedly from management's current judgments. Significant estimates made by the
Organization's management include, but are not limited to, the collectability of accounts
receivable, and the allocation of expenses to program activities and general and administrative.
• Management's estimate of the collectability of accounts receivables is based on assessing
the potential uncollectible receivables outstanding using the specific identification
method.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose of the expenditures incurred during the
year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures
affecting the Organizations financial statements relate to related -parry transactions.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you
significant unusual transactions identified during our audit. There were no significant unusual
transactions identified as a result of our audit procedures that were brought to the attention of
management.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Newport Beach & Company
September 19, 2022
Page 4
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. There were no uncorrected misstatements during the year ended June 30,
2022.
In addition, professional standards require us to communicate to you all corrected misstatements
that were brought to the attention of management as a result of our audit procedures. The
attached Exhibit A summarizes the corrected financial statement misstatement.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor's Report
For purposes of this letter, professional standards require that we communicate any
circumstances that affect the form and content of our auditors' report. We have not identified or
obtained information that affect the form and content of the Auditors' Report.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
attached letter dated September 19, 2022.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Newport Beach & Company
September 19, 2022
Page 5
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss
a variety of matters, including the application of accounting principles and auditing standards,
significant events or transactions that occurred during the year, operating conditions affecting the
Organization, and operating plans and strategies that may affect the risks of material
misstatement. None of the matters discussed resulted in a condition to our retention as the
Organization's auditors.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
ICMj- Cam, t 1011�1 L-P
KMJ Corbin & Company LLP
Exhibit A
Schedule of Corrected Misstatements
June 30, 2022
Financial Statement Effects
Increase
Increase
Increase
Increase
(Decrease)
(Decrease)
(Decrease)
(Decrease)
Total
Total
Net
Change In
Description of Corrected Misstatement Debit Credit
Assets
Liabilities
Assets
Net Assets
AJE#1
Accounts receivable 11,448
Community Marketing Income 11,448
11,448
-
11,448
11,448
- To record June 2022 revenues.
$ 11,448 $ 11,448
$ 11,448
$ -
$ 11,448
$ 11,448
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
September 19, 2022
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Visit Newport Beach, Inc. (the
"Organization") as of and for the year ended June 30, 2022, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting ("internal control") as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis. A reasonable possibility exists when the
likelihood of an event occurring is either reasonably possible or probable as defined as follows:
• Reasonably possible. The chance of the future event or events occurring is more than remote
but less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses.
Given these limitations, during our audit we did not identify any deficiencies in internal controls that
we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
knnT &Q,;,,,,, t C"n LLP
KMJ Corbin & Company LLP
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
VISIT
E W P O T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for August 2022
CALIFORNIA
Year To Date Year To Date
08/31/2022 08/31/2021
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
790,503.37
600,561.99
189,941.38
Total Revenue
790,503.37
600,561.99
189,941.38
Other Income
46001 - Interest Income
310.32
23.64
286.68
Total Other Income
310.32
23.64
286.68
Total Operating Revenue
790,813.69
600,585.63
190,228.06
Expenses
Salary and Wages
61010 - Salaries and Wages
134,502.05
54,040.67
80,461.38
61015 - Bonuses and Commissions
91,031.13
0.00
91,031.13
61020 - Auto Allowance
2,580.00
1,890.00
690.00
61030 - Payroll Tax Expenses
14,122.75
9,093.84
5,028.91
Total Salary and Wages
242,235.93
65,024.51
177,211.42
Benefits
61110 - Medical Insurance
19,502.86
18,182.70
1,320.16
61115 - Benefit Administrative Fees
75.00
75.00
0.00
61120 - Dental Insurance
1,300.25
1,275.47
24.78
61125 - Vision Insurance
233.47
252.37
(18.90)
61130 - Life and Disability
3,047.26
3,559.58
(512.32)
61140 - Retirement Plan (401k)
14,328.77
9,402.48
4,926.29
61150 - Flexible Spending Plan
156.25
112.50
43.75
61160 - Employee Engagement Benefit
1,873.98
406.68
1,467.30
Total Benefits
40,517.84
33,266.78
7,251.06
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
0.00
470.38
(470.38)
64101 - Kitchen Supplies
0.00
220.13
(220.13)
64110 - Office Equipment Leases
0.00
400.00
(400.00)
64115 - Office Equipment (non-deprec)
3,051.07
1,439.16
1,611.91
64120 - Equipment Repairs & Maintenance
5,120.98
3,447.10
1,673.88
64125 - Computer Software (non-deprec)
4,428.00
5,760.50
(1,332.50)
64130 - Voice and Data - Office
1,191.18
1,153.52
37.66
64135 - Telephone - Mobile
1,800.00
900.00
900.00
64136 - Cable Expenses
0.00
137.98
(137.98)
64140 - Postage
0.00
150.92
(150.92)
64145 - Shipping Charges
56.86
77.88
(21.02)
64150 - Bank Fees
40.00
0.00
40.00
64160 - Membership Dues
26,493.53
16,615.60
9,877.93
64170 - Team Meetings
2,104.16
135.97
1,968.19
64175 - Governance Meeting Expenses
131.80
0.00
131.80
64180 - Education
0.00
3,076.62
(3,076.62)
VISIT
E W P O T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for August 2022
CALIFORNIA
Year To Date Year To Date
08/31/2022 08/31/2021
$ Variance Year over
64190 - Business Licensing and Fees
0.00
205.33
(205.33)
64300 - Depreciation Expense
1,356.92
808.96
547.96
64600 - Business Meals/Entertainment
536.60
322.52
214.08
Total Operating Expenses
46,311.10
35,322.57
10,988.53
Office Lease and Expenses
62100 - Office Lease
34,036.74
36,359.51
(2,322.77)
62115 - Office Move Expenses
357.79
0.00
357.79
62120 - Offsite Storage
671.74
0.00
671.74
Total Office Lease and Expenses
35,066.27
36,359.51
(1,293.24)
Insurance
63200 - Workers Compensation Insurance
3,294.63
2,663.50
631.13
63300 - Board of Directors Insurance
1,769.34
0.00
1,769.34
Total Insurance
5,063.97
2,663.50
2,400.47
Professional Fees
64205 - Payroll Processing Service
528.20
459.88
68.32
64206 - Independent Contractors
6,662.50
0.00
6,662.50
Total Professional Fees
7,190.70
459.88
6,730.82
Travel Expenses
65100 - Airfare
3,019.29
0.00
3,019.29
65200 - Accommodations
1,378.20
700.32
677.88
65300 - Meals
314.15
123.95
190.20
65400 - Transportation Costs
705.33
96.35
608.98
65500 - Other Travel Costs
105.03
100.00
5.03
Total Travel Expenses
5,522.00
1,020.62
4,501.38
Total General and Administrative
99,154.04
75,826.08
23,327.96
Advertising Expenses
66121- Promotional Gift Cards
3,367.85
6,134.95
(2,767.10)
66123 - Promotional Client Gifts
0.00
(62.98)
62.98
66203 - Creative Design/Development
2,583.56
0.00
2,583.56
66205 - Photography/Video Production
183.64
0.00
183.64
67101 - Research
0.00
1,500.00
(1,500.00)
Total Advertising Expenses
6,135.05
7,571.97
(1,436.92)
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
2,000.00
(2,000.00)
Total Community Relations
0.00
2,000.00
(2,000.00)
Digital Marketing
67502 - Website Maintenance
9,742.65
8,971.56
771.09
66211 - CRM Maintenance
30,713.04
19,399.00
11,314.04
Total Digital Marketing
40,455.69
28,370.56
12,085.13
Total Marketing Expenses
40,455.69
30,370.56
10,085.13
VISIT
NLWf ORT
B L ►C H 0
CALIFORNIA
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2022
Year To Date
Year To Date
08/31/2022
08/31/2021
2,911.25
2,145.58
68,235.00
37,310.00
7,111.18
73.26
78,257.43
39,528.84
26,372.00
2,995.51
25,975.00
55,342.51
5,289.34
1,236.00
1,457.12
98.932.00
20,550.00
0.00
45,000.00
65,550.00
1,887.42
550.00
0.00
49.404.22
$ Variance Year over
765.67
30, 925.00
7,037.92
38,728.59
5,822.00
2,995.51
(19, 025.00)
(10,207.49)
3,401.92
686.00
1,457.12
49, 527.78
106,914.46
51,841.64
55,072.82
240,514.40
156,920.48
83,593.92
(432.00)
(4,000.00)
3,568.00
4,021.49
0.00
4,021.49
12,376.00
5,226.03
7,149.97
15,965.49
1,226.03
14,739.46
684,978.44
370,206.41
314,772.03
105,835.25
230,379.22
(124,543.97)
VISIT
N EW PORT
BEACH
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2022
Year To Date Year To Date
07/31/2022 07/31/2021
$ Variance Year over
364,329.49 263,875.04 100,454.45
364,329.49 263,87S.04 100,454.45
112.89 12.96
1 1 2.R9 1296
99.93
99.93
Total Operating Revenue
364,442.38
263,888.00
100,554.38
Expenses
Salary and Wages
61010 - Salaries and Wages
61,575.50
42,151.70
19,423.80
61015 - Bonuses and Commissions
91,031.13
0.00
91,031.13
61020 - Auto Allowance
1,190.00
620.00
570.00
61030 - Payroll Tax Expenses
9,386.70
4,236.56
5,150.14
Total Salary and Wages
163,183.33
47,008.26
116,175.07
Benefits
61110 - Medical Insurance
12,440.79
11,496.23
944.56
61115 - Benefit Administrative Fees
50.00
50.00
0.00
61120 - Dental Insurance
846.77
826.27
20.50
61125 - Vision Insurance
153.74
163.19
(9.45)
61130 - Life and Disability
2,281.47
2,288.30
(6.83)
61140 - Retirement Plan (401k)
8,383.45
2,371.51
6,011.94
61150 - Flexible Spending Plan
93.75
75.00
18.75
61160 - Employee Engagement Benefit
1,656.63
248.33
1,408.30
Total Benefits
2S,906.60
17,518.83
8,387.77
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
0.00
338.56
(338.56)
64101- Kitchen Supplies
0.00
130.47
(130.47)
64110 - Office Equipment Leases
0.00
200.00
(200.00)
64115 - Office Equipment (non-deprec)
2,695.51
0.00
2,695.51
64120 - Equipment Repairs & Maintenance
2,948.18
1,842.30
1,105.88
64125 - Computer Software (non-deprec)
4,374.00
5,724.50
(1,350.50)
64130 - Voice and Data - Office
595.59
501.49
94.10
64135 - Telephone - Mobile
900.00
300.00
600.00
64136 - Cable Expenses
0.00
68.99
(68.99)
64140 - Postage
0.00
150.92
(150.92)
64145 - Shipping Charges
25.85
57.28
(31.43)
64150 - Bank Fees
0.00
(10.00)
10.00
64160 - Membership Dues
25,493.53
16,615.60
8,877.93
64170 - Team Meetings
50.00
0.00
50.00
64180 - Education
0.00
3,068.62
(3,068.62)
64300 - Depreciation Expense
678.46
404.48
273.98
VISIT
N E W P O T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH @ Statement of Activities YoY for July 2022
CALIFORNIA
Year To Date Year To Date
07/31/2022 07/31/2021
$ Variance Year over
64600 - Business Meals/Entertainment
536.60
0.00
536.60
Total Operating Expenses
38,297.72
29,393.21
8,904.51
Office Lease and Expenses
62100 - Office Lease
22,691.16
24,078.99
(1,387.83)
62110 - Office Repairs and Maintenance
1,350.00
0.00
1,350.00
62120 - Offsite Storage
234.50
0.00
234.50
Total Office Lease and Expenses
24,275.66
24,078.99
196.67
Insurance
63200 - Workers Compensation Insurance
3,294.63
0.00
3,294.63
Total Insurance
3,294.63
0.00
3,294.63
Professional Fees
64205 - Payroll Processing Service
274.62
227.64
46.98
Total Professional Fees
274.62
227.64
46.98
Travel Expenses
65100 - Airfare
3,019.29
0.00
3,019.29
65200 - Accommodations
1,378.20
700.32
677.88
65300 - Meals
314.15
123.95
190.20
65400 - Transportation Costs
705.33
91.71
613.62
65500 - Other Travel Costs
105.03
100.00
5.03
Total Travel Expenses
5,522.00
1,015.98
4,506.02
Total General and Administrative
71,664.63
54,715.82
16,948.81
Advertising Expenses
66123 - Promotional Client Gifts
0.00
(62.98)
62.98
66203 - Creative Design/Development
2,392.88
0.00
2,392.88
66205 - Photography/Video Production
183.64
0.00
183.64
Total Advertising Expenses
2,576.52
(62.98)
2,639.50
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
0.00
2,000.00
(2,000.00)
Total Community Relations
0.00
2,000.00
(2,000.00)
Digital Marketing
67502 - Website Maintenance
3,703.82
3,590.00
113.82
66211 - CRM Maintenance
27,213.04
0.00
27,213.04
Total Digital Marketing
30,916.86
3,590.00
27,326.86
Total Marketing Expenses
30,916.86
5,590.00
25,326.86
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
1,801.98
1,716.68
85.30
66222 - Trade Show Registration
32,500.00
33,810.00
(1,310.00)
Total Trade Show Expense
34,301.98
35,526.68
(1,224.70)
Sponsorships
66231 - Sales Group Enhancement Credit
5,872.00
750.00
5,122.00
66233 - Industry Partnerships
25,975.00
45,000.00
(19,025.00)
Total Sponsorships
31,847.00
45,750.00
(13,903.00)
VISIT
NLWP RT
B L ►C H
CALIFORNIA
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income (Loss)
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2022
Year To Date Year To Date
07/31/2022 07/31/2021
$ Variance Year over
2,334.63
726.02
1,608.61
1,236.00
550.00
686.00
98,052.00
48,578.92
49,473.08
101,622.63
49,854.94
51,767.69
167,771.61
131,131.62
36,639.99
(1,432.00)
0.00
(1,432.00)
1,982.31
0.00
1,982.31
7,800.00
226.03
7,573.97
8,350.31
226.03
8,124.28
470,369.86
256,127.58
214,242.28
(105,927.48)
7,760.42
(113,687.90)
VISIT
NEWPORPTR Visit Newport Beach, Inc. Group Sales (TBID)
BEACH
is Statement of Activities YoY for June 2022
CALIFORNIA
Year To Date Year To Date
06/30/2022 06/30/2021
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
3,768,832.95
1,681,911.83
Z086,921.12
Total Revenue
3,768,832.9E
1,681,911.83
2,086,921.12
Other Income
46002 - Gain/Loss on Assets
(1,627.23)
0.00
(1,627.23)
46001- Interest Income
845.25
1,493.94
(648.69)
46004 - Miscellaneous Income
0.00
22,800.00
(22,800.00)
Total Other Income
(781.98)
24,293.94
(25,075.92)
Total Operating Revenue
3,768,050.97
1,706,20S.77
2,061,845.20
Expenses
Salary and Wages
61010 - Salaries and Wages
776,619.90
563,645.26
21Z974.64
61015 - Bonuses and Commissions
51,054.23
21,953.01
29,101.22
61020 - Auto Allowance
15,230.00
12,770.00
Z460.00
61030 - Payroll Tax Expenses
73,447.92
44,786.91
28,661.01
61040 - Accrued PTO Expense
16,452.13
17,622.60
(1,170.47)
Total Salary and Wages
932,804.18
660,777.78
272,026.40
Benefits
61110 - Medical Insurance
83,052.85
77,049.20
6,003.65
61115 - Benefit Administrative Fees
300.00
329.03
(29.03)
61120 - Dental Insurance
5,727.39
7,136.55
(1,409.16)
61125 - Vision Insurance
949.32
1,092.73
(143.41)
61130 - Life and Disability
15,407.91
14,473.52
934.39
61140 - Retirement Plan (401k)
73,371.23
27,573.79
45,797.44
61150 - Flexible Spending Plan
1,276.75
2,695.44
(1,418.69)
61160 - Employee Engagement Benefit
7,135.80
5,674.89
1,460.91
Total Benefits
187,221.2S
136,025.1S
51,196.10
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
4,627.25
2,538.86
Z088.39
64101- Kitchen Supplies
1,617.92
805.55
812.37
64110 - Office Equipment Leases
2,200.00
2,400.00
(200.00)
64115 - Office Equipment (non-deprec)
7,526.42
1,670.82
5,855.60
64120 - Equipment Repairs & Maintenance
29,373.26
18,683.00
10,690.26
64125 - Computer Software (non-deprec)
8,015.88
8,133.91
(118.03)
64130 - Voice and Data - Office
8,255.45
7,266.33
989.12
64135 - Telephone - Mobile
8,100.00
4,170.00
3,930.00
64136 - Cable Expenses
770.40
1,264.08
(493.68)
64140 - Postage
704.22
385.00
319.22
64145 - Shipping Charges
1,208.57
263.02
945.55
64150 - Bank Fees
35.00
40.00
(5.00)
64160 - Membership Dues
33,080.60
32,135.06
945.54
VISIT
NEWPORT
BEACH
CALIFORNIA
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.625/mile 2022)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101- Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
67101- Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2022
Year To Date Year To Date
06/30/2022 06/30/2021
$ Variance Year over
6,739.64
6,072.13
667.51
3,020.00
0.00
3,020.00
24,070.92
5,775.76
18,295.16
205.33
35.00
170.33
7,210.38
5,188.54
2,021.84
6,292.31
1,471.47
4,820.84
0.00
556.96
(556.96)
153,053.55
98,855.49
54,198.06
119,349.50
118,142.99
1,206.51
5,225.00
0.00
5,225.00
703.08
0.00
703.08
125,277.58
118,142.99
7,134.59
1,437.67
1,337.34
100.33
1,779.54
3,002.54
(1,223.00)
1,769.34
2,488.29
(718.95)
4,986.55
6,828.17
(1,841.62)
4,331.22
5,804.05
(1,472.83)
3,055.00
66.25
2,988.75
108,000.00
108,000.00
0.00
15,000.00
13,500.00
1,500.00
2,000.00
2,000.00
0.00
132,386.22 129,370.30
3,015.92
1,094.32
0.00
1,094.32
5,706.84
0.00
5,706.84
353.92
0.00
353.92
401.03
0.00
401.03
267.21
3.80
263.41
165.00
0.00
165.00
7,988.32
3.80
7,984.52
423,692.22
353,200.75
70,491.47
33,355.00
5,000.00
28,355.00
50,092.70
7,854.92
42,237.78
11,925.71
3,978.34
7,947.37
0.00
2,916.20
(2,916.20)
113,563.73
10,728.40
102,835.33
1,500.00
0.00
1,500.00
210,437.14
30,477.86
179,959.28
43,153.25
0.00
43,153.25
VISIT
N E W P 7A Visit Newport Beach, Inc. Group Sales (TBID)
BEACH r Statement of Activities YoY for June 2022
CALIFORNIA
Year To Date Year To Date
06/30/2022 06/30/2021
$ Variance Year over
67107 - Promotional Items
0.00
61.00
(61.00)
Total Community Relations
43,153.25
61.00
43,092.25
Marketing Collateral
67309 - Marketing Plan
4,926.59
0.00
4,926.59
67311 - Collateral Production Expenses
0.00
187.59
(187.59)
Total Marketing Collateral
4,926.59
187.59
4,739.00
Digital Marketing
67502 - Website Maintenance
33,946.56
9,764.00
24,182.56
67503 - Online Search Advertising
0.00
12,000.00
(12,000.00)
67504 - Digital Advertising
0.00
5,512.50
(5,512.50)
67508 - Website Redesign Expenses
0.00
26,544.40
(26,544.40)
66211 - CRM Maintenance
25,003.20
44,744.00
(19,740.80)
Total Digital Marketing
58,949.76
98,564.90
(39,615.14)
Total Marketing Expenses
107,029.60
98,813.49
8,216.11
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
46,031.56
9,194.26
36,837.30
66222 - Trade Show Registration
104,924.00
18,439.52
86,484.48
66223 - Trade Show Booth Expenses
69,988.25
14,184.41
55,803.84
Total Trade Show Expense
220,943.81
41,818.19
179,125.62
Sponsorships
66231 - Sales Group Enhancement Credit
159,862.60
9,200.00
150,662.60
66232 - Hosted Industry Events
3,500.00
0.00
3,500.00
66233 - Industry Partnerships
57,708.34
68,216.92
(10,508.58)
66234 - Industry Sponsorships
7,187.33
2,500.00
4,687.33
Total Sponsorships
228,258.27
79,916.92
148,341.35
Sales Initiatives
66207 - Site Inspections
11,325.68
2,902.44
8,423.24
66208 - Client Events
66,307.31
0.00
66,307.31
66209 - Database/Prospecting
91,986.88
20,811.44
71,175.44
Total Sales Initiatives
169,619.87
23,713.88
145,905.99
Total Direct Sales Initiatives
618,821.95
145,448.99
473,372.96
Customized Destination Support
66243 - Hotel Partner Booking Incentives
120,805.01
4,000.00
116,805.01
66247 - Partner Engagement Expenses
4,330.05
1,768.99
2,561.06
66248 - Group Marketing Initiatives
112,870.21
11,475.32
101,394.89
Total Customized Destination Support
238,005.27
17,244.31
220,760.96
Total Expenses
2,718,011.61
1,441,988.33
1,276,023.28
Other Expenses
64510 - Moving Expenses
2,821.55
0.00
2,821.55
Total Other Expenses
2,821.55
0.00
2,821.55
Net Income
1,047,217.81
264,217.44
783,000.37
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 4-1-22 to 6-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking - California Bank and Tr
Account No: 5798822408
4/5/2022
V01218--UPS
3-26-22 Shippin
70.28
4/11/2022
V01498--Newport Beach Country Club*
1214
508.43
4/11/2022
V01346--Intacct
7765
5,898.00
4/11/2022
V00791--Noble Studios
7760
2,487.50
4/11/2022
V00798--Northstar Travel Media
7759
6,000.00
4/11/2022
V01835--Voda Films
7767
49,100.00
4/11/2022
V01474--Renaissance Newport Beach
7764
2,778.36
4/11/2022
V00526--Hyatt Regency Newport Beach
7763
1,200.00
4/11/2022
V00918--Premier Displays and Exhibits
7762
5,572.91
4/11/2022
V00102--Balboa Bay Resort
7761
500.00
4/11/2022
V00526--Hyatt Regency Newport Beach
7766
750.00
4/12/2022
V01842--Sterling Administration
P4/8/22FSATBID
326.93
4/12/2022
V01842--Sterling Administration
P3/25/22FSATBID
326.93
4/12/2022
V01218--UPS
4-2-22 Shipping
35.01
4/12/2022
V00526--Hyatt Regency Newport Beach
7772
1,500.00
4/12/2022
V01474--Renaissance Newport Beach
7770
899.00
4/12/2022
V01886--Fox Rothchild LLP
7768
117.00
4/12/2022
V00682--Master Connection Associates
7771
12,000.00
4/12/2022
V00526--Hyatt Regency Newport Beach
7769
1,500.00
4/13/2022
V01190--Transamerica Retirement Solutions
PP 4/8/22 401(k
6,284.36
4/13/2022
V01842--Sterling Administration
3/22FSAFeesTBID
62.50
4/19/2022
V01218--UPS
4-9-22 UPS TBID
5.17
4/19/2022
V01835--Voda Films
7773
2,500.00
4/19/2022
V01474--Renaissance Newport Beach
7774
1,000.00
4/20/2022
V01564--Standard Insurance RAS Executive
7776
517.13
4/20/2022
V01721--Wells Fargo Vendor Fin Sery
7775
326.31
4/21/2022
V00767--Newport Beach Bayview Marriott
7778
1,000.00
4/21/2022
V01038--Skyward Technical Solutions
7777
1,722.30
4/21/2022
V01740--Choice Builder
5/22 Dental/Vis
527.17
4/26/2022
V01218--UPS
4/16/22UPS TBID
5.17
4/27/2022
V01143--The Irvine Company, LLC
5/22 Ste 130 Le
11,121.41
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 4-1-22 to 6-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking
- California Bank and Tr Account No: 5798822408
4/27/2022
V01842--Sterling Administration
4/22/22FSA TBID
326.93
4/28/2022
V01498--Newport Beach Country Club*
1215
258.00
4/28/2022
V01190--Transamerica Retirement Solutions
PP 4/22/22 401(
6,284.36
4/29/2022
V00150--Blue Shield of California
5/22 BlueShield
3,055.22
5/3/2022
V01218--UPS
4/23/22 UPSTBID
5.17
5/3/2022
V01910--Midori Hope Uyeno Quiroga
1216
500.00
5/4/2022
V00526--Hyatt Regency Newport Beach
7793
1,500.00
5/4/2022
V01474--Renaissance Newport Beach
7786
3,500.00
5/4/2022
V00526--Hyatt Regency Newport Beach
7784
1,000.00
5/4/2022
V00526--Hyatt Regency Newport Beach
7792
1,000.00
5/4/2022
V01878--Carrie Audino Strain
7788
960.00
5/4/2022
V00526--Hyatt Regency Newport Beach
7791
1,000.00
5/4/2022
V00102--Balboa Bay Resort
7790
2,500.00
5/4/2022
V01474--Renaissance Newport Beach
7789
1,200.00
5/4/2022
V00767--Newport Beach Bayview Marriott
7782
150.00
5/4/2022
V01474--Renaissance Newport Beach
7781
2,284.00
5/4/2022
V00767--Newport Beach Bayview Marriott
7785
510.00
5/4/2022
V00767--Newport Beach Bayview Marriott
7787
2,108.39
5/4/2022
V01474--Renaissance Newport Beach
7780
878.06
5/4/2022
V01620--Lido House, LLC
7779
2,889.54
5/4/2022
V01620--Lido House, LLC
7783
2,273.65
5/10/2022
V01218--UPS
4/30/22 UPSTBID
5.17
5/11/2022
V01190--Transamerica Retirement Solutions
PP 5/6/22 401(k
6,284.37
5/11/2022
V01835--Voda Films
7798
24,550.00
5/11/2022
V01878--Carrie Audino Strain
7797
800.00
5/11/2022
V00767--Newport Beach Bayview Marriott
7796
1,200.00
5/11/2022
V00767--Newport Beach Bayview Marriott
7801
672.00
5/11/2022
V00767--Newport Beach Bayview Marriott
7799
750.00
5/11/2022
V00767--Newport Beach Bayview Marriott
7795
555.00
5/11/2022
V00767--Newport Beach Bayview Marriott
7800
608.00
5/11/2022
V00767--Newport Beach Bayview Marriott
7794
2,615.00
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 4-1-22 to 6-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking - California Bank and Tr
Account No: 5798822408
5/13/2022
V01842--Sterling Administration
4/22FSAFeeTBID
62.50
5/17/2022
V01218--UPS
5/7/22 UPS TBID
5.17
5/18/2022
V01721--Wells Fargo Vendor Fin Sery
7805
320.71
5/18/2022
V01911--IMW Agency
7804
575.00
5/18/2022
V00791--Noble Studios
7803
2,487.50
5/18/2022
V00604--Kim Kelley Productions
7802
1,900.00
5/23/2022
V01740--Choice Builder
6/22 Dental/Vis
492.30
5/24/2022
V01218--UPS
5/14/22 UPSTBID
5.17
5/24/2022
V01564--Standard Insurance RAS Executive
7808
517.13
5/24/2022
V00267--Conference Direct
7807
2,975.00
5/24/2022
V01563--Standard Insurance Company
7806
999.78
5/25/2022
V01842--Sterling Administration
PP5/20/22FSATBI
326.93
5/25/2022
V01190--Transamerica Retirement Solutions
PP 5/20/22 401(
6,284.36
5/25/2022
V01842--Sterling Administration
PP5/6/22FSATBID
326.93
5/27/2022
V01927--Beltmann Group Inc NW5968
7810
335.97
5/27/2022
V00918--Premier Displays and Exhibits
7809
1,044.48
5/31/2022
V01593--J.C.M. Painting
1217
225.00
5/31/2022
V01218--UPS
5/21/22 UPSTBID
5.17
5/31/2022
V01143--The Irvine Company, LLC
6/22 Ste 130 Le
11,121.41
6/1/2022
V00150--Blue Shield of California
6/22 BlueShiel
3,055.22
6/2/2022
V01498--Newport Beach Country Club*
1218
500.00
6/2/2022
V01038--Skyward Technical Solutions
7817
2,178.90
6/2/2022
V01474--Renaissance Newport Beach
7816
5,645.48
6/2/2022
V00102--Balboa Bay Resort
7815
1,000.00
6/2/2022
V00102--Balboa Bay Resort
7814
1,500.00
6/2/2022
V01474--Renaissance Newport Beach
7813
1,167.35
6/2/2022
V00947--Hyatt Regency John Wayne Airport NB
7812
4,650.00
6/2/2022
V00102--Balboa Bay Resort
7811
500.00
6/7/2022
V01218--UPS
UPS 5/28/22TBID
5.17
6/7/2022
V01842--Sterling Administration
6/3/22 FSA TBID
326.93
6/8/2022
V01190--Transamerica Retirement Solutions
PP 6/3/22 401(k
6,284.36
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 4-1-22 to 6-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking
- California Bank and Tr Account No: 5798822408
6/9/2022
V00526--Hyatt Regency Newport Beach
7836
1,500.00
6/9/2022
V00791--Noble Studios
7835
2,487.50
6/9/2022
V01585--Destinations International
7834
5,895.00
6/9/2022
V01474--Renaissance Newport Beach
7833
1,000.00
6/9/2022
V01474--Renaissance Newport Beach
7832
1,000.00
6/9/2022
V01038--Skyward Technical Solutions
7831
2,000.00
6/9/2022
V01878--Carrie Audino Strain
7830
1,100.00
6/9/2022
V01620--Lido House, LLC
7829
1,570.39
6/9/2022
V01620--Lido House, LLC
7828
1,104.99
6/9/2022
V00526--Hyatt Regency Newport Beach
7827
2,500.00
6/9/2022
V00767--Newport Beach Bayview Marriott
7826
6,651.02
6/9/2022
V00526--Hyatt Regency Newport Beach
7825
500.00
6/9/2022
V01474--Renaissance Newport Beach
7824
2,000.00
6/9/2022
V00767--Newport Beach Bayview Marriott
7823
744.00
6/9/2022
V00767--Newport Beach Bayview Marriott
7822
1,000.00
6/9/2022
V00773--VEA Newport Beach
7821
10,650.00
6/9/2022
V00773--VEA Newport Beach
7820
4,350.00
6/9/2022
V01474--Renaissance Newport Beach
7819
1,200.00
6/9/2022
V00733--MPI
7818
505.00
6/10/2022
V01888--Ben Stinnett
1219
2,100.00
6/14/2022
V01218--UPS
6/4/22 UPS TBID
5.17
6/15/2022
V01842--Sterling Administration
5/22 FSAFeeTBID
62.50
6/15/2022
V01930--Carolyn Clark
7837
300.00
6/16/2022
V01835--Voda Films
7841
4,850.00
6/16/2022
V00791--Noble Studios
7840
875.00
6/16/2022
V01721--Wells Fargo Vendor Fin Sery
7839
370.18
6/16/2022
V00918--Premier Displays and Exhibits
7838
1,044.48
6/16/2022
V01377--Newport Beach and Company
Q4_FY22 Marketi
27,000.00
6/21/2022
V01218--UPS
6/11/22UPS TBID
5.17
6/21/2022
V01785--Charles Schwab & Co., Inc
1220
482,500.00
6/22/2022
V01190--Transamerica Retirement Solutions
PP 6/17/22 401(
6,284.36
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 4-1-22 to 6-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking - California Bank and Tr
Account No: 5798822408
6/22/2022
V01842--Sterling Administration
6/17/22FSA TBID
326.93
6/22/2022
V01740--Choice Builder
7/22 Dental/Vis
375.98
6/23/2022
V00767--Newport Beach Bayview Marriott
7848
4,500.00
6/23/2022
V01564--Standard Insurance RAS Executive
7847
517.13
6/23/2022
V00791--Noble Studios
7846
100.00
6/23/2022
V01563--Standard Insurance Company
7845
499.89
6/23/2022
V00767--Newport Beach Bayview Marriott
7844
905.26
6/23/2022
V00604--Kim Kelley Productions
7843
950.00
6/23/2022
V00767--Newport Beach Bayview Marriott
7842
284.05
6/24/2022
V01143--The Irvine Company, LLC
7/22 Ste 130 Le
11,345.58
6/28/2022
V01498--Newport Beach Country Club*
1222
500.00
6/28/2022
V01940--Grace Blu Interior Designs
1221
5,000.00
6/28/2022
V01038--Skyward Technical Solutions
7859
5,176.19
6/28/2022
V00798--Northstar Travel Media
7858
21,500.00
6/28/2022
V00767--Newport Beach Bayview Marriott
7857
3,000.00
6/28/2022
V00773--VEA Newport Beach
7856
1,500.00
6/28/2022
V00773--VEA Newport Beach
7855
750.00
6/28/2022
V00773--VEA Newport Beach
7854
1,500.00
6/28/2022
V00773--VEA Newport Beach
7853
1,000.00
6/28/2022
V00773--VEA Newport Beach
7852
2,000.00
6/28/2022
V00773--VEA Newport Beach
7851
500.00
6/28/2022
V00526--Hyatt Regency Newport Beach
7850
1,500.00
6/28/2022
V00526--Hyatt Regency Newport Beach
7849
1,500.00
6/28/2022
V01218--UPS
6/18/22UPS TBID
5.17
6/28/2022
V00150--Blue Shield of California
7/22 BlueShield
3,055.22
6/29/2022
V01038--Skyward Technical Solutions
7860
4,067.84
6/30/2022
V00773--VEA Newport Beach
7879
26,115.60
6/30/2022
V00947--Hyatt Regency John Wayne Airport NB
7878
13,261.00
6/30/2022
V00773--VEA Newport Beach
7877
2,458.75
6/30/2022
V01878--Carrie Audino Strain
7876
1,220.00
6/30/2022
V00767--Newport Beach Bayview Marriott
7875
3,175.33
Company Name:
Visit Newport Beach, Inc. - TBID
Report Name:
TBID Check Register - 4-1-22 to 6-30-22
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking - California Bank and Tr
Account No: 5798822408
6/30/2022
V00767--Newport Beach Bayview Marriott
7874
6,817.02
6/30/2022
V00767--Newport Beach Bayview Marriott
7873
1,811.23
6/30/2022
V00102--Balboa Bay Resort
7872
1,000.00
6/30/2022
V00947--Hyatt Regency John Wayne Airport NB
7871
2,905.81
6/30/2022
V00102--Balboa Bay Resort
7870
6,068.70
6/30/2022
V00102--Balboa Bay Resort
7869
500.00
6/30/2022
V01888--Ben Stinnett
1225
2,090.00
6/30/2022
V00947--Hyatt Regency John Wayne Airport NB
7868
12,938.34
6/30/2022
V01620--Lido House, LLC
7867
1,972.00
6/30/2022
V01941--We Are Meetings
1224
4,088.00
6/30/2022
V00102--Balboa Bay Resort
7866
500.00
6/30/2022
V00798--Northstar Travel Media
7865
4,000.00
6/30/2022
V01620--Lido House, LLC
7864
1,194.73
6/30/2022
V00947--Hyatt Regency John Wayne Airport NB
7863
1,570.06
6/30/2022
V00102--Balboa Bay Resort
7862
768.97
6/30/2022
V00102--Balboa Bay Resort
7861
6,828.09
6/30/2022
V01938--Sally Ross
1223
591.96
Total for CBT TBID Checking
993,078.24
VISIT
NLWPCB T
BEACH 0
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
61040 - Accrued PTO Expense
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101 - Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2022
Year To Date Year To Date
05/31/2022 05/31/2021
$ Variance Year over
3,402, 079.86
1,446,266.65
1,955,813.21
3,402,079.86
1,446,266.65
1,955,813.21
241.34
527.22
(285.88)
241.34
527.22
(285.88)
3,402,321.20
1,446,793.87
1,955,527.33
661,294.13
487,268.97
174,025.16
43,701.45
0.00
43,701.45
13,680.00
10,925.00
2,755.00
61,591.83
35,881.55
25,710.28
0.00
283.65
(283.65)
780,267.41
534,359.17
245,908.24
80,685.32
75,172.49
5,512,83
300.00
329.03
(29.03)
5,655.39
7,064.42
(1,409.03)
1,053.31
1,077.56
(24.25)
15,102.80
14,237.62
865.18
63, 445.69
19,376.21
44, 069.48
1,351.75
2,630.44
(1,278.69)
4,900.81
3,041.66
1,859.15
172,495.07
122,929.43
49,565.64
4,566.67
2,214.58
2,352.09
914.57
747.91
166.66
2,200.00
2,200.00
0,00
2,398.40
1,670.82
727.58
23,305.42
17,028.20
6,277.22
7,961.88
8,093.41
(131.53)
7,426.16
6,464.19
961.97
7,200.00
3,320.00
3,880.00
780.21
1,195.09
(414.88)
624.22
385.00
239.22
1,187.89
247.57
940.32
35.00
15.00
20.00
33,010.60
32,063.77
946.83
6,622.04
6,063.13
558.91
3,000.00
0.00
3,000.00
24,054.54
4,574.20
19,480.34
205.33
35.00
170.33
6,531.92
4,784.06
1,747.86
5,050.86
1,336.47
3,714.39
0.00
1,056.96
(1,056.96)
137,075.71
93,495.36
43,580.35
VISIT
NLWPCB T
BEACH 0
CALIFORNIA
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
62120 - Offsite Storage
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
67101 - Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
67107 - Promotional Items
Total Community Relations
Marketing Collateral
67309 - Marketing Plan
67311- Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2022
Year To Date Year To Date
05/31/2022 05/31/2021
$ Variance Year over
141,230.36
120,089.41
21,140,95
225.00
0.00
225.00
337.94
0.00
337.94
141,793.30
120,089.41
21,703.89
1,437.67
1,337.34
100.33
2,001.50
3,002.54
(1,001.04)
1,769.34
2,488.29
(718.95)
5,208.51
6,828.17
(1,619.66)
3,956.56
4,446.51
(489.95)
1,900.00
66.25
1,833.75
81,000.00
81,000.00
0.00
0.00
13,500.00
(13,500.00)
0.00
2,000.00
(2,000.00)
86,856.56
101,012.76
(14,156.20)
695.13
0.00
695.13
4,344.56
0.00
4,344.56
251.89
0.00
251.89
401.03
0.00
401.03
250.62
3.80
246,82
165.00
0.00
165.00
6,108.23
3.80
6,104.43
377,042.31
321,429.50
55,612.81
11,855.00
5,000.00
6,855.00
39,400.25
5,250.00
34,150,25
6,166.48
3,684.22
2,482.26
0.00
2,916.20
(2,916.20)
81,011.94
10,728.40
70,283.54
1,500.00
0.00
1,500.00
139,933.67
27,578.82
112,354.85
43,153.25
0.00
43,153.25
0.00
61.00
(61.00)
43,153.25
61.00
43,092.25
4,926.59
0.00
4,926.59
0.00
187.59
(187.59)
4,926.59
187.59
4,739.00
31,359.06
9,764.00
21,595.06
0.00
12,000.00
(12,000.00)
0.00
5,512.50
(5,512.50)
0.00
24,332.33
(24,332.33)
25,003.20
44,744.00
(19,740.80)
56,362.26
96,352.83
(39,990.57)
104,442.10
96,601.42
7,840.68
VISIT
N GW PORT Visit Newport Beach, Inc. Group Sales (TBID)
BEACHL C� I� Statement of Activities YoY for May 2022
L3 0
CALIFORNIA
Year To Date
Year To Date
05/31/2022
05/31/2021
$ Variance Year over
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
31,858.06
4,633.47
27,224.59
66222 - Trade Show Registration
103,799.00
16,039.52
87,759,48
66223 - Trade Show Booth Expenses
68,943.77
10,406.23
58,537,54
Total Trade Show Expense
204,600.83
31,079.22
173,521.61
Sponsorships
66231 - Sales Group Enhancement Credit
108,497.00
8,700.00
99,797,00
66233 - Industry Partnerships
53,410.00
68,216.92
(14,806.92)
66234 - Industry Sponsorships
2,187.33
2,500.00
(312.67)
Total Sponsorships
164,094.33
79,416.92
84,677.41
Sales Initiatives
66207 - Site Inspections
10,542.49
2,169.16
8,373.33
66208 - Client Events
4,907.31
0.00
4,907,31
66209 - Database/Prospecting
89,666.88
17,311.44
72,355,44
Total Sales Initiatives
105,116.68
19,480.60
85,636.08
Total Direct Sales Initiatives
473,811.84
129,976.74
343,835.10
Customized Destination Support
66243 - Hotel Partner Booking Incentives
24,849.71
(18,800.00)
43,649.71
66247 - Partner Engagement Expenses
3,767.70
1,064.62
2,703,08
66248 - Group Marketing Initiatives
70,313.52
7,494.10
62,819.42
Total Customized Destination Support
98,930.93
(10,241.28)
109,172.21
Total Expenses
2,146,923.33
1,222,633.80
924,289.53
Other Expenses
64510 - Moving Expenses
555.55
0.00
555.55
Total Other Expenses
555.55
0.00
555.55
Net Income
1,254,842.32
224,160.07
1,030,682.25
VISIT
N LW PORT Visit Newport Beach, Inc. Group Sales (TBID)
BEACH Statement of Activities YoY for April 2022
CALIFORNIA
Year To Date
Year To Date
04/30/2022
04/30/2021
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
3,031,658.84
1,279,409.91
1,752,248.93
Total Revenue
3,031,658.84
1,279,409.91
1,752,248.93
Other Income
46001 - Interest Income
208.45
476.78
(268.33)
Total Other Income
208.45
476.78
(268.33)
Total Operating Revenue
3,031,867.29
1,279,886.69
1,751,980.60
Expenses
Salary and Wages
61010 - Salaries and Wages
591,977.63
433,787.52
158,190.11
61015 - Bonuses and Commissions
43,701.45
0.00
43,701.45
61020 - Auto Allowance
12,330.00
9,805.00
2,525.00
61030 - Payroll Tax Expenses
56,202.74
31,202.24
25,000.50
61040 - Accrued PTO Expense
0.00
283.65
(283.65)
Total Salary and Wages
704,211.82
475,078.41
229,133.41
Benefits
61110 - Medical Insurance
73,434.42
70,568.24
2,866.18
61115 - Benefit Administrative Fees
275.00
304.03
(29.03)
61120 - Dental Insurance
5,157.59
6,525.90
(1,368.31)
61125 - Vision Insurance
962.97
980.38
(17.41)
61130 - Life and Disability
13,280.78
12,984.70
296.08
61140 - Retirement Plan (401k)
57,792.34
15,083.73
42,708.61
61150 - Flexible Spending Plan
1,289.25
2,607.44
(1,318.19)
61160 - Employee Engagement Benefit
3,825.55
2,853.65
971.90
Total Benefits
156,017.90
111,908.07
44,109.83
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
4,331.36
2,060.25
2,271.11
64101 - Kitchen Supplies
926.23
603.52
322.71
64110 - Office Equipment Leases
2,000.00
2,000.00
0.00
64115 - Office Equipment (non-deprec)
1,659.71
1,460.71
199.00
64120 - Equipment Repairs & Maintenance
21,126.52
15,523.40
5,603.12
64125 - Computer Software (non-deprec)
7,765.50
7,670.53
94.97
64130 - Voice and Data - Office
6,633.47
5,845.75
787.72
64135 - Telephone - Mobile
6,300.00
2,870.00
3,430.00
64136 - Cable Expenses
706.96
1,162.75
(455.79)
64140 - Postage
576.59
385.00
191.59
64145 - Shipping Charges
1,167.21
226.97
940.24
64150 - Bank Fees
35.00
0.00
35.00
64160 - Membership Dues
33,010.60
32,063.77
946.83
64170 - Team Meetings
6,413.24
5,955.46
457.78
64175 - Governance Meeting Expenses
3,000.00
0.00
3,000.00
64180 - Education
24,054.54
574.20
23,480.34
64190 - Business Licensing and Fees
205.33
35.00
170.33
VISIT
N LW PORT Visit Newport Beach, Inc. Group Sales (TBID)
BEACH Statement of Activities YoY for April 2022
CALIFORNIA
Year To Date
Year To Date
04/30/2022
04/30/2021
$ Variance Year over
64300 - Depreciation Expense
5,829.92
4,379.58
1,450.34
64600 - Business Meals/Entertainment
4,376.60
949.27
3,427.33
64400 - Bad Debt Expense
0.00
1,056.96
(1,056.96)
Total Operating Expenses
130,118.78
84,823.12
45,295.66
Office Lease and Expenses
62100 - Office Lease
130,108.95
108,185.25
21,923.70
62120 - Offsite Storage
259.77
0.00
259.77
Total Office Lease and Expenses
130,368.72
108,185.25
22,183.47
Insurance
63100 - General Liability Insurance
1,437.67
1,337.34
100.33
63200 - Workers Compensation Insurance
2,001.50
3,002.54
(1,001.04)
63300 - Board of Directors Insurance
1,769.34
2,488.29
(718.95)
Total Insurance
5,208.51
6,828.17
(1,619.66)
Professional Fees
64205 - Payroll Processing Service
3,705.12
4,239.63
(534.51)
64206 - Independent Contractors
0.00
66.25
(66.25)
67004 - Marketing NBCo Fees
81,000.00
81,000.00
0.00
64202 - Tax Preparation Fees
0.00
1,000.00
(1,000.00)
Total Professional Fees
84,705.12
86,305.88
(1,600.76)
Travel Expenses
65100 - Airfare
695.13
0.00
695.13
65200 - Accommodations
4,344.56
0.00
4,344.56
65300 - Meals
251.89
0.00
251.89
65400 - Transportation Costs
401.03
0.00
401.03
65405 - Mileage ($0.58/mile 2021)
250.62
3.80
246.82
65500 - Other Travel Costs
165.00
0.00
165.00
Total Travel Expenses
6,108.23
3.80
6,104.43
Total General and Administrative
356,509.36
286,146.22
70,363.14
Advertising Expenses
66101 - Advertising - Purchased
8,880.00
0.00
8,880.00
66121 - Promotional Gift Cards
35,900.25
5,250.00
30,650.25
66123 - Promotional Client Gifts
5,166.48
3,194.02
1,972.46
66202 - Ad Production
0.00
2,916.20
(2,916.20)
66203 - Creative Design/Development
53,401.37
10,728.40
42,672.97
67101 - Research
1,500.00
0.00
1,500.00
Total Advertising Expenses
104,848.10
22,088.62
82,759.48
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
41,562.25
0.00
41,562.25
67107 - Promotional Items
0.00
61.00
(61.00)
Total Community Relations
41,562.25
61.00
41,501.25
Marketing Collateral
67309 - Marketing Plan
4,926.59
0.00
4,926.59
67311 - Collateral Production Expenses
0.00
187.59
(187.59)
Total Marketing Collateral
4,926.59
187.59
4,739.00
Digital Marketing
67502 - Website Maintenance
28,871.56
9,764.00
19,107.56
VISIT
N LVIA PORT
BEACIA 4)
CALIFORNIA
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2022
Year To Date Year To Date
04/30/2022 04/30/2021
0.00
0.00
0.00
25,003.20
53,874.76
100,363.60
27,219.17
103,799.00
67,849.03
198,867.20
92,173.00
53,410.00
2,187.33
147.770.33
12,000.00
5,512.50
22,120.30
44,744.00
94,140.80
94,389.39
4,128.43
10,029.52
5,767.17
19,925.12
7,500.00
68,216.92
2,500.00
78,216.92
$Variance Year over
(12, 000.00)
(5,512.50)
(22,120.30)
(19,740.80)
(40,266.04)
5,974.21
23, 090.74
93,769.48
62, 081.86
1 78,942.08
84, 673.00
(14,806.92)
(312.67)
69,553.41
8,473.19
1,669.16
6,804.03
4,907.31
0.00
4,907.31
88,866.88
12,408.36
76,458.52
102,247.38
14,077.52
88,169.86
448,884.91
112,219.56
336,665.35
14,829.71
(13,800.00)
28,629.71
3,051.76
1,064.62
1,987.14
45,699.67
7,494.10
38,205.57
63,581.14
(5,241.28)
68,822.42
1,934,416.83
1,096,588.99
837,827.84
1,097,450.46
183,297.70
914,152.76
VISIT
N LW PORT
BEACH 0
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating
Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64170
- Team Meetings
64175
- Governance Meeting Expenses
64180
- Education
64190
- Business Licensing and Fees
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2022
Year To Date Year To Date
03/31/2022 03/31/2021
$ Variance Year over
2,785,555.94
1,176,316.35
1,609,239.59
2,785,555.94
1,176,316.35
1,609,239.59
180.24
419.33
(239.09)
180.24
419.33
(239.09)
2,785,736.18
1,176,735.68
1,609,000.50
522,661.12
378,704.11
143,957.01
43,701.45
0.00
43,701.45
10,980.00
8,760.00
2,220.00
50,813.67
26,718.35
24,095.32
0.00
283.65
(283.65)
628,156.24
414,466.11
213,690.13
65,365.99
61,744.30
3,621.69
250.00
279.03
(29.03)
4,624.92
6,100.56
(1,475.64)
872.63
875.93
(3.30)
12,458.54
11,731.78
726.76
52,138.99
10,570.93
41,568.06
899.82
2,584.44
(1,684.62)
3,491.20
2,636.06
855.14
140,102.09
96,523.03
43,579.06
3,873.18
835.11
3,038.07
843.51
530.75
312.76
1,800.00
1,800.00
0.00
1,659.71
1,460.71
199.00
19,404.22
14,018.60
5,385.62
6,133.50
6,485.03
(351.53)
5,836.21
5,267.02
569.19
5,400.00
2,520.00
2,880.00
633.71
1,074.51
(440.80)
472.26
385.00
87.26
1,106.03
206.37
899.66
35.00
0.00
35.00
33,010.60
32,063.77
946.83
6,413.24
5,796.89
616.35
16.00
0.00
16.00
7,004.54
574.20
6,430.34
205.33
35.00
170.33
VISIT
N LW PORT
BEACH 0
CALIFORNIA
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
67101 - Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
67107 - Promotional Items
Total Community Relations
Marketing Collateral
67309 - Marketing Plan
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2022
Year To Date Year To Date
03/31/2022 03/31/2021
$ Variance Year over
5,127.92
3,975.10
1,152.82
3,985.71
686.22
3,299.49
0.00
1,056.96
(1,056.96)
102,960.67
78,771.24
24,189.43
118,987.54
96,281.09
22,706.45
118,987.54
96,281.09
22,706.45
0.00
1,337.34
(1,337.34)
2,001.50
3,002.54
(1,001.04)
1,769.34
2,488.29
(718.95)
3,770.84
6,828.17
(3,057.33)
3,453.68
3,051.19
402.49
0.00
66.25
(66.25)
81,000.00
81,000.00
0.00
0.00
1,000.00
(1,000.00)
84,453.68
85,117.44
(663.76)
695.13
0.00
695.13
3,403.48
0.00
3,403.48
251.89
0.00
251.89
401.03
0.00
401.03
250.62
3.80
246.82
165.00
0.00
165.00
5,167.15
3.80
5,163.35
315,339.88
267,001.74
48,338.14
8,880.00
0.00
8,880.00
33,347.60
5,250.00
28,097.60
5,166.48
2,276.00
2,890.48
0.00
2,823.60
(2,823.60)
1,307.63
10,728.40
(9,420.77)
1,500.00
0.00
1,500.00
50,201.71
21,078.00
29,123.71
41,562.25
0.00
41,562.25
0.00
61.00
(61.00)
41,562.25
61.00
41,501.25
4,926.59
0.00
4,926.59
0.00
187.59
(187.59)
4,926.59
187.59
4,739.00
26,384.06
7,489.00
18,895.06
0.00
12,000.00
(12,000.00)
VISIT
N LW PORT
BEACH 4)
CALIFORNIA
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2022
Year To Date
Year To Date
03/31/2022
03/31/2021
$Variance Year over
0.00
5,512.50
(5,512.50)
0.00
19,908.27
(19,908.27)
25,003.20
39,744.00
(14,740.80)
51,387.26
84,653.77
(33,266.51)
97,876.10
84,902.36
12,973.74
23,880.05
4,128.43
19,751.62
93,799.00
6,331.52
87,467.48
62,338.03
5,767.17
56,570.86
180,017.08
16,227.12
163,789.96
77,723.00
7,000.00
70,723.00
53,410.00
66,557.57
(13,147.57)
7,187.33
2,500.00
4,687.33
138,320.33
76,057.57
62,262.76
7,368.42
598.41
6,770.01
3,227.31
0.00
3,227.31
87,906.88
8,908.36
78,998.52
98,502.61
9,506.77
88,995.84
416,840.02
101,791.46
315,048.56
7,777.70
(13,800.00)
21,577.70
2,855.38
1,064.62
1,790.76
34,780.68
3,210.30
31,570.38
45,413.76
(9,525.08)
54,938.84
1,693,929.80
976,237.62
717,692.18
1,091,806.38
200,498.06
891,308.32
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 1-1-22 to 3-31-22
Created On:
4/12/2022
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document No
Amount
CBT TBID Checking - California Bank and
Account No: 5798822408
Trust
1/4/2022
V01218--UPS
12/25/21UPSTBID
5.15
1/4/2022
V01225--US Travel Association
7682
8,775.00
1/5/2022
V00526--Hyatt Regency Newport Beach
Voided - 7678
-1,000.00
1/5/2022
V01190--Transamerica Retirement Solutions
PP 12/30/21 401
3,448.65
1/5/2022
V01842--Sterling Administration
12/30/21FSATBID
229.01
1/11/2022
V01218--UPS
1/1/22UPS TBID
5.17
1/11/2022
V00243--City of Newport Beach {Revenue Divisi
7683
42.50
1/11/2022
V00526--Hyatt Regency Newport Beach
7684
5,000.00
1/11/2022
V01879--Elizabeth Sheldon
7686
848.75
1/11/2022
V01894--Global Cynergies, LLC
7685
5,250.00
1/13/2022
V00767--Newport Beach Bayview Marriott
Voided - 7688
-2,000.00
1/13/2022
V00767--Newport Beach Bayview Marriott
Voided - 7690
-750.00
1/13/2022
V00767--Newport Beach Bayview Marriott
7690
750.00
1/13/2022
V01713--Northeast CVB Reps
7689
400.00
1/13/2022
V00102--Balboa Bay Resort
7687
620.62
1/13/2022
V00767--Newport Beach Bayview Marriott
7688
2,000.00
1/13/2022
V01842--Sterling Administration
12/21FSAFeeTBID
37.50
1/18/2022
V01842--Sterling Administration
1/14/22FSATBID
326.93
1/18/2022
V01218--UPS
1/08/22 UPSTBID
5.17
1/20/2022
V01190--Transamerica Retirement Solutions
PP 1/14/22 401(
6,925.56
1/21/2022
V01740--Choice Builder
2/22 Dental/Vis
476.08
1/21/2022
V01721--Wells Fargo Vendor Fin Sery
7691
239.43
1/21/2022
V00647--LinkedIn
7692
8,880.00
1/21/2022
V01833--Future Plan by Ascensus
7693
822.18
1/24/2022
V01498--Newport Beach Country Club*
Voided - 7680
-527.94
1/25/2022
V01218--UPS
1/15/22UPSTBID
5.17
1/25/2022
V01564--Standard Insurance PAS Executive
7694
517.13
1/25/2022
V01563--Standard Insurance Company
7695
499.89
1/26/2022
V01038--Skyward Technical Solutions
7696
1,729.40
1/27/2022
V01896--M Nice Consulting LLC
7697
2,875.00
1/28/2022
V01143--The Irvine Company, LLC
2/22 Ste 130 Le
11,121.41
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 1-1-22 to 3-31-22
Created On:
4/12/2022
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document No
Amount
CBT TBID Checking - California Bank and
Account No: 5798822408
Trust
1/31/2022
V00150--Blue Shield of California
2/22 BlueShield
3,713.40
1/31/2022
V01474-- Rena issance Newport Beach
7701
1,200.00
1/31/2022
V00773--Newport Beach Marriott Hotel and Spa
7705
750.00
1/31/2022
V00918--Premier Displays and Exhibits
7703
17,424.08
1/31/2022
V00102--Balboa Bay Resort
7700
500.00
1/31/2022
V00773--Newport Beach Marriott Hotel and Spa
7704
2,000.00
1/31/2022
V00102--Balboa Bay Resort
7706
500.00
1/31/2022
V00767--Newport Beach Bayview Marriott
7702
408.00
1/31/2022
V00773--Newport Beach Marriott Hotel and Spa
7707
250.00
1/31/2022
V00773--Newport Beach Marriott Hotel and Spa
7699
750.00
1/31/2022
V00773--Newport Beach Marriott Hotel and Spa
7698
500.00
1/31/2022
V01498--Newport Beach Country Club*
1212
1,027.94
1/31/2022
V01878--Carrie Audino Strain
1211
1,568.75
2/1/2022
V01842--Sterling Administration
1/28/22FSA TBID
326.93
2/1/2022
V01218--UPS
UPS1/22/22 TBID
5.17
2/2/2022
V01190--Transamerica Retirement Solutions
PP 1/28/22 401(
6,251.50
2/8/2022
V01218--UPS
UPS1/29/22 TBID
5.17
2/14/2022
V01842--Sterling Administration
1/22FSAFeesTBID
62.50
2/14/2022
V00773--Newport Beach Marriott Hotel and Spa
7709
5,000.00
2/14/2022
V01896--M Nice Consulting LLC
7708
875.00
2/14/2022
V01878--Carrie Audino Strain
7710
210.00
2/15/2022
V01218--UPS
2/5/22 UPS TBID
5.17
2/15/2022
V01842--Sterling Administration
2/11/22FSA TBID
326.93
2/16/2022
V01190--Transamerica Retirement Solutions
PP 2/11/22 401(
6,284.36
2/22/2022
V01218--UPS
2/12/22 UPSTBID
5.17
2/23/2022
V01740--Choice Builder
3/22 Dental/Vis
476.08
2/23/2022
V00302--Cvent,Inc.
7714
22,905.81
2/23/2022
V01563--Standard Insurance Company
7713
499.89
2/23/2022
V01564--Standard Insurance RAS Executive
7712
517.13
2/23/2022
V01721--Wells Fargo Vendor Fin Sery
7711
231.95
2/25/2022
V01143--The Irvine Company, LLC
3/22 Ste 130 Le
11,121.41
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 1-1-22 to 3-31-22
Created On:
4/12/2022
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document No
Amount
CBT TBID Checking - California Bank and
Account No: 5798822408
Trust
2/28/2022
V00791--Noble Studios
7725
4,975.00
2/28/2022
V00150--Blue Shield of California
3/22 BlueShield
3,713.40
2/28/2022
V00102--Balboa Bay Resort
7717
500.00
2/28/2022
V01474-- Rena issance Newport Beach
7720
500.00
2/28/2022
V00526--Hyatt Regency Newport Beach
7723
2,100.00
2/28/2022
V00526--Hyatt Regency Newport Beach
7719
1,500.00
2/28/2022
V01620--Lido House, LLC
7718
4,231.35
2/28/2022
V01620--Lido House, LLC
7716
1,194.73
2/28/2022
V01038--Skyward Technical Solutions
7724
1,722.30
2/28/2022
V01346--Intacct
7715
150.00
2/28/2022
V01878--Carrie Audino Strain
7722
140.00
2/28/2022
V00773--Newport Beach Marriott Hotel and Spa
7721
127.25
3/1/2022
V00526--Hyatt Regency Newport Beach
7728
1,000.00
3/1/2022
V00102--Balboa Bay Resort
7727
1,200.00
3/1/2022
V00767--Newport Beach Bayview Marriott
7726
712.00
3/1/2022
V00102--Balboa Bay Resort
7730
1,500.00
3/1/2022
V00102--Balboa Bay Resort
7731
1,500.00
3/1/2022
V00773--Newport Beach Marriott Hotel and Spa
7729
2,000.00
3/1/2022
V01218--UPS
UPS2/19/22 TBID
5.17
3/1/2022
V01842--Sterling Administration
2/25/22FSA TBID
326.93
3/2/2022
V01190--Transamerica Retirement Solutions
PP 2/25/22 401(
6,284.36
3/2/2022
V01498--Newport Beach Country Club*
1213
742.00
3/7/2022
V00791--Noble Studios
7732
2,487.50
3/7/2022
V01897--Coraggio Group, LLC
7733
4,926.59
3/8/2022
V01218--UPS
2/26/22 UPSTBID
5.17
3/14/2022
V01842--Sterling Administration
2/22FSAFeesTBID
62.50
3/15/2022
V01218--UPS
3-5-22 UPS
34.87
3/15/2022
V01620--Lido House, LLC
7735
750.00
3/15/2022
V00920--Prestige Concepts Promotion and Even
7736
1,756.76
3/15/2022
V01474-- Rena issance Newport Beach
7734
1,000.00
3/16/2022
V01190--Transamerica Retirement Solutions
PP 3/11/22 401(
6,284.36
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 1-1-22 to 3-31-22
Created On:
4/12/2022
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document No
Amount
CBT TBID Checking - California Bank and
Account No: 5798822408
Trust
3/16/2022
V01842--Sterling Administration
3/11/22FSA TBID
326.93
3/22/2022
V01218--UPS
3-12-22UPS TBID
5.17
3/22/2022
V01740--Choice Builder
4/22 Dental/Vis
457.43
3/24/2022
V01721--Wells Fargo Vendor Fin Sery
7739
268.91
3/24/2022
V01878--Carrie Audino Strain
7737
280.00
3/24/2022
V00920--Prestige Concepts Promotion and Even
7738
2,747.16
3/28/2022
V01143--The Irvine Company, LLC
4/22 Ste 130 Le
11,121.41
3/29/2022
V01218--UPS
3/19/22UPS TBID
5.17
3/29/2022
V01038--Skyward Technical Solutions
7743
1,722.30
3/29/2022
V01564--Standard Insurance RAS Executive
7742
517.13
3/29/2022
V01563--Standard Insurance Company
7740
499.89
3/29/2022
V01878--Carrie Audino Strain
7741
880.00
3/30/2022
V00150--Blue Shield of California
4/22 BlueShield
4,061.66
3/30/2022
V01190--Transamerica Retirement Solutions
PP 3/25/22 401(
6,284.36
3/31/2022
V01903--Informa Connect
7755
24,300.00
3/31/2022
V01474-- Rena issance Newport Beach
7757
500.00
3/31/2022
V01474-- Rena issance Newport Beach
7758
500.00
3/31/2022
V00102--Balboa Bay Resort
7754
1,200.00
3/31/2022
V01876--Miglino Event Productions
7756
550.00
3/31/2022
V01377--Newport Beach and Company
Q3_FY22 Marketi
27,000.00
3/31/2022
V01876--Miglino Event Productions
Voided - 7561
-550.00
3/31/2022
V00267--Conference Direct
7752
8,800.00
3/31/2022
V01474-- Rena issance Newport Beach
7751
500.00
3/31/2022
V01474-- Rena issance Newport Beach
7749
2,000.00
3/31/2022
V00773--Newport Beach Marriott Hotel and Spa
7750
1,246.20
3/31/2022
V01474-- Rena issance Newport Beach
7744
750.00
3/31/2022
V00102--Balboa Bay Resort
7753
1,500.00
3/31/2022
V00526--Hyatt Regency Newport Beach
7748
2,500.00
3/31/2022
V00526--Hyatt Regency Newport Beach
7747
500.00
3/31/2022
V00947--Hyatt Regency John Wayne Airport NB
7746
5,000.00
3/31/2022
V00526--Hyatt Regency Newport Beach
7745
1,000.00
Company Name:
Report Name:
Created On:
Location:
Bank
CBT TBID Checking - California Bank and
Trust
Visit Newport Beach, Inc.
TBID Check Register - 1-1-22 to 3-31-22
4/12/2022
400--Visit Newport Beach, Inc. Group Sales
Date
Account No: 5798822408
Vendor
Document No Amount
Total for CBT TBID Checking 303,166.06
VISIT
N LW PORT
BEACH H
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary
and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating
Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64170
- Team Meetings
64175
- Governance Meeting Expenses
64180
- Education
64190
- Business Licensing and Fees
64300
- Depreciation Expense
64600
- Business Meals/Entertainment
64400
- Bad Debt Expense
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2022
Year To Date Year To Date
02/28/2022 02/28/2021
$ Variance Year over
2,613,594.22
1,110, 511.0 0
1, 503, 083.22
2,613,594.22
1,110, 511.00
1,503,083.22
150.92
355.86
(204.94)
150.92
355.86
(204.94)
2,613,745.14
1,110,866.86
1,502,878.28
453,344.63
334,199.32
119,145.31
37,884.30
0.00
37,884.30
9,660.00
7,740.00
1,920.00
44,968.26
27,073.92
17,894.34
0.00
283.65
(283.65)
545,857.19
369,296.89
176,560.30
58,301.52
55,073.85
3,227.67
225.00
254.03
(29.03)
4,173.49
5,448.86
(1,275.37)
783.45
786.02
(2.57)
11,187.26
10,431.03
756.23
46,022.66
5,741.46
40,281.20
837.32
2,517.05
(1,679.73)
3,203.85
2,509.41
694.44
124,734.55
82,761.71
41,972.84
995.80
718.74
277.06
741.56
530.75
210.81
1,600.00
1,600.00
0.00
1,659.71
1,460.71
199.00
17,681.92
12,375.30
5,306.62
6,133.50
6,449.03
(315.53)
5,039.23
4,580.23
459.00
4,500.00
2,220.00
2,280.00
560.46
986.80
(426.34)
416.41
385.00
31.41
1,042.89
185.77
857.12
35.00
0.00
35.00
28,075.60
26,533.77
1,541.83
5,193.50
5,796.89
(603.39)
16.00
0.00
16.00
6,679.54
574.20
6,105.34
205.33
35.00
170.33
4,425.92
3,570.62
855.30
2,873.89
686.22
2,187.67
0.00
1,056.96
(1,056.96)
87,876.26
69,745.99
18,130.27
VISIT
N LW PORT
BEACH H
CALIFORNIA
Office Lease and Expenses
62100 - Office Lease
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
67101 - Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2022
Year To Date Year To Date
02/28/2022 02/28/2021
$ Variance Year over
107,866.13
84,376.93
23,489.20
107,866.13
84,376.93
23,489.20
2,001.50
3,002.54
(1,001.04)
1,769.34
2,488.29
(718.95)
3,770.84
5,490.83
(1,719.99)
3,207.24
1,754.87
1,452.37
0.00
66.25
(66.25)
54,000.00
54,000.00
0.00
0.00
1,000.00
(1,000.00)
57,207.24
56,821.12
386.12
362.95
0.00
362.95
2,045.07
0.00
2,045.07
241.61
0.00
241.61
186.63
0.00
186.63
250.62
3.80
246.82
115.00
0.00
115.00
3,201.88
3.80
3,198.08
259,922.35
216,438.67
43,483.68
8,880.00
0.00
8,880.00
27,219.65
5,250.00
21,969.65
1,554.94
2,203.88
(648.94)
1,307.63
10,728.40
(9,420.77)
1,500.00
0.00
1,500.00
40,462.22
18,182.28
22,279.94
41,562.25
0.00
41,562.25
41,562.25
0.00
41,562.25
0.00
187.59
(187.59)
0.00
187.59
(187.59)
23,896.56
6,089.00
17,807.56
0.00
12,000.00
(12,000.00)
0.00
5,512.50
(5,512.50)
0.00
17,696.24
(17,696.24)
25,003.20
39,744.00
(14,740.80)
48,899.76
81,041.74
(32,141.98)
90,462.01
81,229.33
9,232.68
21,064.36
4,128.43
16,935.93
80,999.00
6,331.52
74,667.48
56,723.42
4,722.69
52,000.73
158,786.78
15,182.64
143, 604.14
VISIT
NLWP RT
BEACIA 4)
CALIFORNIA
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2022
Year To Date Year To Date
02/28/2022 02/28/2021
64,773.00
53,410.00
5,000.00
123,183.00
6,729.00
3,227.31
86.746.88
5,750.00
62,439.57
2,500.00
70,689.57
598.41
0.00
8.908.36
$Variance Year over
59, 023.00
(9,029.57)
2,500.00
52,493.43
6,130.59
3,227.31
77,838.52
96,703.19
9,506.77
87,196.42
378,672.97
95,378.98
283,293.99
6,777.70
(15,800.00)
22,577.70
2,855.38
1,064.62
1,790.76
33,534.48
0.00
33,534.48
43,167.56
(14,735.38)
57,902.94
1,483,278.85
848,552.48
634,726.37
1,130,466.29
262,314.38
868,151.91
VISIT
L ��L• W P O R T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for January 2022
CALIFORNIA
Year To Date Year To Date
01/31/2022 01/31/2021
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
2,340,321.72
1,033,557.27
1,306,764.45
Total Revenue
2,340,321.72
1,033,SS7.27
1,306,764.45
Other Income
46001- Interest Income
123.50
300.51
(177.01)
Total Other Income
123.50
300.51
(177.01)
Total Operating Revenue
2,340,445.22
1,033,857.78
1,306,587.44
Expenses
Salary and Wages
61010 - Salaries and Wages
384,190.36
289,694.52
94,495.84
61015 - Bonuses and Commissions
37,884.30
0.00
37,884.30
61020 - Auto Allowance
8,340.00
6,720.00
1,620.00
61030 - Payroll Tax Expenses
39,594.63
23,373.12
16,221.51
61040 - Accrued PTO Expense
0.00
283.65
(283.65)
Total Salary and Wages
470,009.29
320,071.29
149,938.00
Benefits
61110 - Medical Insurance
51,615.05
48,563.24
3,051.81
61115 - Benefit Administrative Fees
200.00
229.03
(29.03)
61120 - Dental Insurance
3,703.41
4,797.16
(1,093.75)
61125 - Vision Insurance
694.27
696.11
(1.84)
61130 - Life and Disability
9,915.98
8,785.66
1,130.32
61140 - Retirement Plan (401k)
40,384.70
2,581.04
37,803.66
61150 - Flexible Spending Plan
1,101.75
732.87
368.88
61160 - Employee Engagement Benefit
2,976.66
2,382.76
593.90
Total Benefits
110,S91.82
68,767.87
41,823.95
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
955.78
613.21
342.57
64101- Kitchen Supplies
582.45
494.23
88.22
64110 - Office Equipment Leases
1,400.00
1,400.00
0.00
64115 - Office Equipment (non-deprec)
1,439.16
1,460.71
(21.55)
64120 - Equipment Repairs & Maintenance
15,959.62
10,882.00
5,077.62
64125 - Computer Software (non-deprec)
5,958.50
6,422.03
(463.53)
64130 - Voice and Data - Office
4,391.88
4,172.49
219.39
64135 - Telephone - Mobile
3,900.00
1,920.00
1,980.00
64136 - Cable Expenses
487.21
621.48
(134.27)
64140 - Postage
305.41
385.00
(79.59)
64145 - Shipping Charges
1,004.21
165.17
839.04
64150 - Bank Fees
35.00
0.00
35.00
64160 - Membership Dues
27,630.60
17,721.27
9,909.33
64170 - Team Meetings
4,201.78
2,046.89
2,154.89
64180 - Education
5,873.16
499.20
5,373.96
VISIT
L ��L• W P O R T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for January 2022
CALIFORNIA
Year To Date Year To Date
01/31/2022 01/31/2021
$ Variance Year over
64190 - Business Licensing and Fees
205.33
35.00
170.33
64300 - Depreciation Expense
3,723.92
3,166.14
557.78
64600 - Business Meals/Entertainment
2,439.07
222.57
2,216.50
64610 - Client Gifts
350.00
0.00
350.00
64400 - Bad Debt Expense
0.00
1,056.96
(1,056.96)
Total Operating Expenses
80,843.08
53,284.35
27,558.73
Office Lease and Expenses
62100 - Office Lease
96,744.72
72,472.77
24,271.95
Total Office Lease and Expenses
96,744.72
72,472.77
24,271.95
Insurance
63200 - Workers Compensation Insurance
2,001.50
3,036.38
(1,034.88)
63300 - Board of Directors Insurance
1,769.34
2,488.29
(718.95)
Total Insurance
3,770.84
5,524.67
(1,753.83)
Professional Fees
64205 - Payroll Processing Service
2,963.30
1,564.15
1,399.15
64206 - Independent Contractors
0.00
66.25
(66.25)
67004 - Marketing NBCo Fees
54,000.00
54,000.00
0.00
64202 - Tax Preparation Fees
0.00
1,000.00
(1,000.00)
Total Professional Fees
56,963.30
56,630.40
332.90
Travel Expenses
65100 - Airfare
362.95
0.00
362.95
65200 - Accommodations
2,045.07
0.00
2,045.07
65300 - Meals
210.97
0.00
210.97
65400 - Transportation Costs
186.63
0.00
186.63
65405 - Mileage ($0.58/mile 2021)
250.62
3.80
246.82
65500 - Other Travel Costs
115.00
0.00
115.00
Total Travel Expenses
3,171.24
3.80
3,167.44
Total General and Administrative
241,493.18
187,915.99
53,577.19
Advertising Expenses
66101- Advertising - Purchased
8,880.00
0.00
8,880.00
66121- Promotional Gift Cards
27,219.65
0.00
27,219.65
66123 - Promotional Client Gifts
1,048.70
2,203.88
(1,155.18)
66203 - Creative Design/Development
1,237.18
10,468.98
(9,231.80)
67101- Research
1,500.00
0.00
1,500.00
Total Advertising Expenses
39,885.53
12,672.86
27,212.67
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
41,562.25
0.00
41,562.25
Total Community Relations
41,562.25
0.00
41,562.25
Marketing Collateral
67311- Collateral Production Expenses
0.00
187.59
(187.59)
Total Marketing Collateral
0.00
187.59
(187.59)
Digital Marketing
67502 - Website Maintenance
18,921.56
6,089.00
12,832.56
67503 - Online Search Advertising
0.00
12,000.00
(12,000.00)
VISIT
l LVIAPORT
E AC I
CALIFORNIA
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2022
Year To Date Year To Date
01/31/2022 01/31/2021
0.00
0.00
?.S nnR m
3,307.50
15,484.21
RR SSn nn
-AOUNI A■
o')"tf/.U1 /S,b1iS.SU
$ Variance Year over
(3,307.50)
(15, 484.21)
(13, 546.80)
(31,505.95)
9,868.71
21,064.36
4,128.43
16,935.93
69,611.00
3,786.52
65,824.48
56,528.42
4,722.69
51,805.73
147,203.78
12,637.64
134,566.14
56,311.00
5,750.00
50,561.00
53,410.00
56,584.47
(3,174.47)
0.00
2,500.00
(2,500.00)
109,721.00
64,834.47
44,886.53
5,879.08
392.67
5,486.41
3,227.31
0.00
3,227.31
63,491.07
8,908.36
54,582.71
72,597.46
9,301.03
63,296.43
329,522.24
86,773.14
242,749.10
477.70
(13,800.00)
14,277.70
801.91
918.00
(116.09)
27,981.15
5,580.00
22,401.15
29,260.76
(7,302.00)
36,562.76
1,306,249.83
744,517.45
561,732.38
1,034,195.39
289,340.33
744,855.06
VISIT
l LWPORT
BEACH ()
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2021
Year To Date Year To Date
10/31/2021 10/31/2020
$ Variance Year over
1,454,092.66 561,198.96 892,893.70
1,454,092.66 561,198.96 892,893.70
58.26 129.88 (71.62)
58.26 129.88 (71.62)
1,454,150.92 561,328.84 892,822.08
172,693.50
148,364.67
24,328.83
5,817.15
0.00
5,817.15
4,430.00
3,660.00
770.00
18,927.30
11,701.43
7,225.87
0.00
283.65
(283.65)
201,867.95
164,009.75
37,858.20
31,555.64
29,031.41
2,524.23
125.00
159.03
(34.03)
2,218.53
2,842.06
(623.53)
430.73
426.38
4.35
6,102.14
4,670.93
1,431.21
21,143.80
0.00
21,143.80
187.50
363.48
(175.98)
2,147.63
1,561.56
586.07
63,910.97
39,054.85
24,856.12
638.18
303.76
334.42
395.28
469.13
(73.85)
800.00
800.00
0.00
1,439.16
843.66
595.50
8,424.84
5,780.00
2,644.84
5,837.00
6,327.53
(490.53)
2,450.94
2,509.82
(58.88)
2,100.00
1,020.00
1,080.00
275.97
352.98
(77.01)
178.17
0.00
178.17
186.03
96.30
89.73
VISIT
l LWPORT
BEACH ()
CALIFORNIA
64150 - Bank Fees
64160 - Membership Dues
64170 - Team Meetings
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
67004 - Marketing NBCo Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
67101 - Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Total Community Relations
Digital Marketing
67502 - Website Maintenance
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2021
Year To Date Year To Date
10/31/2021 10/31/2020
$ Variance Year over
(10.00)
0.00
(10.00)
17,010.60
16,942.27
68.33
507.19
1,296.89
(789.70)
3,156.62
499.20
2,657.42
205.33
0.00
205.33
1,617.92
1,885.80
(267.88)
930.96
104.36
826.60
0.00
1,056.96
(1,056.96)
46,144.19
40,288.66
5,855.53
61,787.77
39,945.73
21,842.04
61,787.77
39,945.73
21,842.04
2,663.50
3,036.38
(372.88)
1,769.34
2,488.29
(718.95)
4,432.84
5,524.67
(1,091.83)
1,950.26
719.43
1,230.83
27,000.00
27,000.00
0.00
0.00
(2,000.00)
2,000.00
28,950.26
25,719.43
3,230.83
700.32
0.00
700.32
123.95
0.00
123.95
96.35
0.00
96.35
25.89
3.80
22.09
100.00
0.00
100.00
1,046.51
3.80
1,042.71
142,361.57
111,482.29
30,879.28
20,875.85
0.00
20,875.85
737.02
181.90
555.12
39.00
10,468.98
(10,429.98)
1,500.00
0.00
1,500.00
23,151.87
10,650.88
12,500.99
3,638.64
0.00
3,638.64
3,638.64
0.00
3,638.64
13,946.56
0.00
13,946.56
VISIT
l LWPORT
BEACH ()
CALIFORNIA
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2021
Year To Date
Year To Date
10/31/2021
10/31/2020
$ Variance Year over
0.00
3,307.50
(3,307.50)
0.00
8,848.12
(8,848.12)
19,399.00
33,550.00
(14,151.00)
33,345.56
45,705.62
(12,360.06)
36,984.20
45,705.62
(8,721.42)
10,207.02
0.00
10,207.02
49,625.00
2,687.52
46,937.48
27,113.98
3,528.21
23,585.77
86,946.00
6,215.73
80,730.27
35,593.00
750.00
34,843.00
45,000.00
35,416.36
9,583.64
80,593.00
36,166.36
44,426.64
3,259.31
51.50
3,207.81
2,227.31
0.00
2,227.31
57,783.57
8,908.36
48,875.21
63,270.19
8,959.86
54,310.33
230,809.19
51,341.95
179,467.24
2,227.70
(6,000.00)
8,227.70
0.00
803.97
(803.97)
7,668.41
5,580.00
2,088.41
9,896.11
383.97
9,512.14
708,981.86
422,629.31
286,352.55
745,169.06
138,699.53
606,469,53
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
with
INDEPENDENT AUDITORS' REPORT THEREON
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................
3
Statementsof Activities.....................................................................................................
4
Statementsof Cash Flows..................................................................................................
5
Notes to Financial Statements.......................................................................................6-16
in J'
KMCompare
Y
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Newport Beach & Company
We have audited the accompanying financial statements of Newport Beach & Company (a non-
profit organization) (the "Organization"), which comprise the statements of financial position as
of June 30, 2021 and 2020, and the related statements of activities and cash flows for the years
then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audits 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 knnipartnerscpa.conn
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Newport Beach & Company as of June 30, 2021 and 2020, and the changes
in its net assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter - Related Party Transactions
As discussed in Note 9 to the financial statements, Newport Beach & Company has significant
transactions with a related non-profit organization and the Organization derives substantial support
and revenue from that related non-profit organization. Our opinion is not modified with respect to
this matter.
Other Matter
As discussed in Note 2 to the financial statements, the Organization changed its method for revenue
recognition in 2021 as a result of the adoption of the amendments to the Financial Accounting
Standards Board Accounting Standards Codification resulting from Accounting Standards Update
2014-09, Revenue from Contracts with Customers, effective July 1, 2020. Our opinion is not
modified with respect to this matter.
kMT ckk"'t C"fol u-P
KMJ Corbin & Company LLP
Irvine, California
September 30, 2021
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2021 2020
ASSETS
Current assets:
Cash $ 219,454 $ 72,690
Accounts receivable 12,891 43,753
Related -party receivables, net 17,611 -
Prepaid expenses and other current assets 76,649 32,672
Total current assets 326,605 149,115
Property and equipment, net 38,142 64,843
$ 364,747 $ 213.958
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 6,049 $ 6,171
Related -party payables, net - 32,739
Accrued expenses 131,671 72,522
Accrued payroll and related expenses 123,767 51,661
Current portion of deferred compensation - 20,000
Loan payable, current portion 1,009 -
Total current liabilities 262,496 183,093
Deferred rent, net of current portion 14,229 100,891
Loan payable, net of current portion 108,441 -
Total liabilities 385,166 283,984
Commitments and contingencies
Net assets without donor restrictions (20,419) (70,026)
$ 364,747 $ 213958
See accompanying notes to financial statements
3
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2021 2020
Support and revenues:
Service fees from related parry $ 1,248,512 $ 2,129,382
Community marketing income 227,621 309,391
Paycheck protection program grant 227,527 -
Total support and revenues 1,703,660 2,438,773
Expenses:
Marketing 111,740 169,364
Salaries and benefits 982,803 1,588,115
Other 532,809 615,560
Depreciation 26,701 35,059
Total expenses 1,654,053 2,408,098
Increase in net assets without donor restrictions 4907 30,675
Net assets without donor restrictions, beginning of year (70,026) (100,701)
Net assets without donor restrictions, end of year $ (20,419) $ (70,026)
See accompanying notes to financial statements
4
Cash flows from operating activities:
Change in net assets without donor restrictions
Adjustments to reconcile change in net assets without
without donor restrictions to net cash provided by
operating activities:
Depreciation
Loss on disposal of equipment
Changes in operating assets and liabilities:
Accounts receivable
Related -party receivables/payables, net
Prepaid expenses and other current assets
Accounts payable
Accrued expenses
Accrued payroll and related expenses
Deferred compensation
Deferred rent
Net cash provided by operating activities
Cash flows used in investing activities:
Purchases of property and equipment
Cash flows provided by financing activities:
Proceeds from loan
Net increase in cash
Cash at beginning of year
Cash at end of year
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2021 2020
$ 49,607 $ 30,675
26,701 35,059
- 1,675
30,862
6,392
(50,350)
140,085
(43,977)
7,173
(122)
(80,354)
59,149
50,746
72,106
(146,785)
(20,000)
(20,000)
(86,662)
3,301
37,314 27,967
- (9,821)
109,450
146,764 18,146
72,690 54,544
$ 219,454 $ 72.690
See accompanying notes to financial statements
5
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1— ORGANIZATION
Nature of Operations
Newport Beach & Company (the "Organization") is a non-profit organization formed under the
laws of the State of California in 2013. The Organization specializes in marketing and promotion
services related to enhancing the economic development for the City of Newport Beach (the
"City"). The Organization currently has agreements with the City to manage its public access
television channel and to provide services to the Balboa Village Merchants Association. Through
June 30, 2021, the Organization also had an agreement with the City to provide services to the
Newport Beach Restaurant Association Business Improvement District. By embracing a variety of
neighborhoods, businesses and individual unique voices into a complementary story, the
Organization seeks to strengthen all of its partners, drive new revenue to the City and enhance the
City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City provides management and
consulting services in support of NBTV. Such services include production, administrative,
and sponsorship services. This agreement expires on April 30, 2023.
Newport Beach Restaurant Association Business Improvement District ("NBRA BID")
The agreement between the Organization and the City, which expired on June 30, 2021,
provided marketing planning and programming, public and media relations, research and
measurement, membership and community events services to the City related to the NBRA
BID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions —Net assets that are not subject to donor -imposed stipulations. These
assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
to
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
With donor restrictions - Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
As of and for the years ended June 30, 2021 and 2020, the Organization had no net assets with donor
restrictions.
Li uidi
In December 2019, a novel strain of coronavirus disease ("COVID-19") was first reported in
Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization
declared COVID-19 a global pandemic. The extent of COVID-19's effect on the Organization's
operational and financial performance will depend on future developments, including the duration,
spread and intensity of the pandemic, all of which are uncertain and difficult to predict considered
the rapidly evolving landscape. The Organization is currently analyzing the potential impacts to
all of its business segments. At this time, it is not possible to determine the magnitude of the overall
impact of COVID-19 on the Organization. However, it could have a material adverse effect on the
Organization's financial condition, liquidity, results of operations, and cash flows. In the short
term, one of the impacts of the pandemic is that the Organization's revenues have declined, but
the Organization cannot predict whether this decline is temporary or not. During the year ended
June 30, 2021, the Organization took certain cost cutting measures including reducing
discretionary marketing and other expenses, and reducing payroll through pay cuts, furloughs, and
reduction in its workforce. The Organization believes these measures, along with its existing cash,
will be sufficient to cover its cash flow requirements for at least the next twelve months from the
date of issuance of these financial statements (see Note 3). However, there can be no assurance
that the Organization will not use its existing capital resources sooner than currently expected.
7
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the sufficiency of its cash resources to fund operations
for the next twelve months, the collectability of receivables, the recoverability of long-lived assets
and the allocation of expenses to program activities and general and administrative. Actual results
may differ from those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation ("FDIC") up to $250,000 per institution. At June 30, 2021, the Organization had no
uninsured balances. The Organization periodically reviews the quality of the financial institutions
it has deposits with to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. At June 30, 2021 and 2020, the Organization considers its accounts
receivable to be fully collectible and accordingly did not record an allowance for doubtful
accounts. As of June 30, 2021 and 2020, one and two customers, respectively, accounted for
approximately 99% and 95% respectively, of the Organization's total accounts receivable balance.
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Deferred Compensation
Deferred compensation represents a commitment to make annual $20,000 annuity payments
through 2021 to a member of the Organization's management. There were no amounts due as of
June 30, 2021.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2021 and 2020, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
During the years ended June 30, 2021 and 2020, the Organization did not have significant
contributed materials and services.
0
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2021 and 2020,
the Organization had no unrelated business income. The Organization annually evaluates tax
positions as part of the preparation of its exempt tax return. This process includes an analysis of
whether tax positions the Organization takes with regard to a particular item of income or
deduction would meet the definition of an uncertain tax position under current accounting
guidance. The Organization believes its tax positions are appropriate based on current facts and
circumstances. The Organization's policy is to recognize interest accrued related to unrecognized
tax benefits in interest expense and penalties in operating expenses. At June 30, 2021 and 2020,
the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to income tax examinations by tax authorities for years
before 2017.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
On July 1, 2020, the Organization adopted Accounting Standards Update ("ASU") 2014-09,
Revenue from Contracts with Customers, as codified in Accounting Standards Codification
("ASC") 606, by applying the modified retrospective method for all contracts. The Organization
evaluated its revenue streams to identify whether each stream would be subject to the provisions
of ASC 606 and any differences in the timing, measurement, or presentation of revenue recognition
compared to ASC 605, Revenue Recognition ("ASC 605"). Based on the assessment of the
Organization's revenue streams, the pattern and timing of recognition of the Company's revenues
under ASC 606 are similar to the manner in which the Company previously recognized revenue
under ASC 605, so there was no effect as a result of the Organization's adoption of ASC 606.
10
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02,
Leases (Topic 842), which requires the lease rights and obligations arising from lease contracts,
including existing and new arrangements, to be recognized as assets and liabilities on the statement
of financial position. ASU 2016-02, as amended, is effective for reporting periods beginning after
December 15, 2021, with early adoption permitted. While still evaluating this update, the
Organization expects the adoption of this update to have a material effect on its financial condition
due to the recognition of the lease rights and obligations as assets and liabilities. The Organization
does not expect this update to have a material effect on its results of operations and cash flows.
In September 2020, the FASB issued ASU No. 2020-07, Presentation and Disclosures by Not -for -
Profit Entities for Contributed Nonfinancial Assets (Topic 958), which requires the Organization
to change its financial statement presentation and disclosure of contributed nonfinancial assets, or
gifts -in -kind. ASU No. 2020-07 defines gifts -in -kind as contributed nonfinancial assets donations
made for goods or services the Organization would purchase in the normal course of business.
Gifts -in -kind of tangible property include items like operating facilities, utilities, office furniture,
and supplies provided to the Organization; items donated to the Organization to be auctioned
through charitable events; and items used in program activities, such as medical supplies, building
supplies, appliances, and fixtures. Intangible gifts -in -kind include items like copyrights, patents,
and royalties; specialized volunteer services, such as those from nurses for medical organizations
or project managers and builders for construction projects; and expertise, such as accounting, legal,
and consulting services. ASU No. 2020-07 is effective for the Organization for fiscal year 2022.
Early adoption is permitted. The Organization is currently evaluating the impact that the adoption
of ASU No. 2020-07 will have on its financial statements.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2021, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
The Organization has $232,345 of financial assets available within one year of the statement of
financial position date to meet cash needs for general expenditures consisting of cash of $219,454
and accounts receivable of $12,891. None of the financial assets are subject to donor or other
contractual restrictions that make them unavailable for general expenditures within one year of the
statement of financial position. The Organization has a policy to structure its financial assets to be
available as its general expenditures, liabilities, and other obligations come due.
11
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 3 — LIQUIDITY AND AVAILABILITY, continued
Funding for the Organization is dependent on funding received from a related parry (see Note 9)
and revenue generated through marketing efforts. As a result, the Organization closely monitors
the monthly projected and received revenue to determine if any changes need to be made to
budgeted annual expenditures.
As discussed in Note 2, in response to COVID-19, the Organization has performed an analysis to
determine whether it will have sufficient cash to fund operations for the next twelve months. Based
on budgeting for necessary expenses and obligations due along with minimal service fee revenues
as a result of the impact of COVID-19 on hotel stays, the Organization has concluded that it will
have sufficient cash to fund operations for at least twelve months from the date of issuance of these
financial statements.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2021
Leasehold improvements $ 79,990
Computer equipment 126,456
Office furniture and fixtures 81,409
287,855
Less accumulated depreciation and amortization (249,713)
$ 38,142
2020
$ 79,990
126,456
81,409
287,855
(223,012)
$ 64,843
12
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2021 and 2020 are as follows:
Salaries and benefits:
Salaries
Payroll taxes and employee benefits
Total salaries and benefits
Other expense:
Marketing
Office lease
Repairs and maintenance
Insurance
Office supplies
Equipment and equipment rental
Postage and fees
Meeting and education
Professional fees and services
Depreciation
Bad debt
Travel and related
Total functional expenses
2021
Program General and 2020
Activities Administrative Total Total
(Summarized)
$ 611,597 $
169,780
$ 781,377
$ 1,210,112
147,842
53,584
201,426
378,003
759,439
223,364
982,803
1,588,115
111,478
262
111,740
169,364
305,478
101,826
407,304
409,271
-
21,083
21,083
30,322
-
6,086
6,086
6,944
-
3,580
3,580
16,628
15,269
28,049
43,318
49,525
1,859
16,455
18,314
5,319
1,093
4,451
5,544
44,133
-
23,117
23,117
22,639
-
26,701
26,701
35,059
-
-
-
4,888
2,641
1,822
4,463
25,891
$ 1.197.257 $
456.796
$ 1.654.053
$ 2.408.098
The Organization incurred expenses related to program activities totaling approximately
$1,733,000 for the year ended June 30, 2020.
NOTE 6 - PAYCHECK PROTECTION PROGRAM GRANT/LOAN
In January 2021, the Organization entered into an unsecured promissory note for a loan (the
"Loan") in the principal amount of $336,997 and received cash proceeds of the same amount,
pursuant to the Paycheck Protection Program (the "PPP"), which is administered by the U.S. Small
Business Administration (the "SBA"). Under the terms of the Loan, interest accrues on the
outstanding principal at the rate of 1.0% per annum. The term of the Loan is five years, unless
sooner required in connection with an event of default under the Loan. To the extent the Loan
amount is not fully forgiven by the SBA, the Organization is obligated to make equal monthly
payments of principal and interest beginning on the earlier of. (1) the date the SBA sends the loan
forgiveness amount to the lender or (2) ten months after the covered 24-week period, until the
maturity date.
13
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 6 — PAYCHECK PROTECTION PROGRAM GRANT/LOAN, continued
The PPP provides a mechanism for forgiveness of up to the full amount borrowed. Under the PPP,
the Organization may apply for and be granted forgiveness for all or part of the PPP Loan. The
amount of loan proceeds eligible for forgiveness is based on a formula that takes into account a
number of factors, including the amount of loan proceeds used by the Organization during the 24-
week period after the loan origination for certain purposes including payroll costs, interest on
certain mortgage obligations, rent payments on certain leases, and certain qualified utility
payments (it being anticipated that at least 60% of the loan amount will be required to be used for
eligible payroll costs); the employer maintaining or rehiring employees and maintaining salaries
at certain levels; and other factors. Subject to the other requirements and limitations on loan
forgiveness, only loan proceeds spent on payroll and other eligible expenses during the covered
24-week period will qualify for forgiveness.
The Organization has used $227,527 of the proceeds for purposes consistent with the PPP and
believes that its use of this portion of the loan proceeds will meet the conditions for forgiveness.
While management believes that it is probable that $227,527 will be forgiven, no definite
assurance can be provided that forgiveness for any portion of the PPP Loan will be obtained. Since
the Company used $227,527 of the proceeds from the PPP Loan for such qualifying expenses
before June 30, 2021, the Company recorded this amount of the PPP Loan proceeds as a
conditional cost -reimbursed government grant in the accompanying consolidated statements of
activities for the year ended June 30, 2021 pursuant to relevant technical accounting guidance.
Future minimum payments under the Organization's loan agreement (net of estimated forgiveness)
are as follows:
Years Ending
June 30,
2022
$ 1,009
2023
29,873
2024
30,173
2025
30,476
2026
17,919
$ 109,450
14
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022 and rent, as amended, is payable between $6,922 and
$32,905 per month. As a result of the fourth amendment to this lease, the Organization is a party
to the lease originally entered into by Visit Newport Beach Inc. ("VNB"), a related party. Under
the terms of this lease, each assignee shall be deemed to assume all lease obligations, and as a
result, the Organization may be liable for future rent payments. The facility lease contains a five-
year extension option at the end of the lease term.
Total rent expense incurred by the Organization under its operating lease was approximately
$407,000 and $409,000 for the years ended June 30, 2021 and 2020, respectively, and is included
in other expenses. Such amounts are net of the amounts paid by VNB pursuant to the Agreement
discussed in Note 9.
Future minimum payments due on its allocated portion of the non -cancelable facility lease
commitment in excess of one year are as follows:
Years Ending
June 30,
2022
2023
Guarantees and Indemnities
480,000
113,000
$ 593,000
The Organization has made certain indemnities and guarantees (including under its PPP Loan),
under which it may be required to make payments to a guaranteed or indemnified party, in relation
to certain actions or transactions. The Organization indemnifies its directors, officers, employees
and agents, as permitted under the laws of the State of California. In connection with its facility
lease, the Organization has indemnified its lessor for certain claims arising from the use of the
facilities. The duration of the guarantees and indemnities varies, and is generally tied to the life of
the agreement. These guarantees and indemnities do not provide for any limitation of the
maximum potential future payments the Organization could be obligated to make. Historically,
the Organization has not been obligated nor incurred any payments for these obligations and,
therefore, no liabilities have been recorded for these indemnities and guarantees in the
accompanying statements of financial position.
15
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provided
matching contributions based upon employees' voluntary contributions and the Organization's
contributions. Effective March 31, 2020, the Organization amended the 401(k) retirement plan to
exclude employer matching contributions. Effective December 13, 2020, the 401(k) retirement
plan was further amended to reinstate the employer matching contributions. The total expense
recorded by the Organization during the years ended June 30, 2021 and 2020 was approximately
$27,000 and $70,000, respectively, which is recorded in salaries and benefits expenses in the
accompanying statements of activities.
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2021 and 2020, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, VNB, initiates, sponsors, promotes
and carries out plans, policies and activities to attract conferences and visitors to the City. VNB
was the driving force behind the formation of the Organization. Pursuant to an Agreement for
Services ("Agreement") dated April 1, 2013, the Organization was appointed by VNB as an
exclusive provider of services that VNB shall need to carry out its mission and obligations to the
City. In consideration for these services, VNB agreed to pay monthly fees totaling $108,000 for
the years ended June 30, 2021 and 2020. VNB has also agreed to reimburse the Organization for
all reasonable expenses incurred by it in carrying out its duties to VNB, including rent and related
facility costs, payroll and related benefits, and other direct marketing costs. For the years ended
June 30, 2021 and 2020, the Organization billed $1,140,512 and $2,021,382, respectively, to VNB
for these fees and costs, which are recorded as service fees from related party in the accompanying
statements of activities. The Agreement, as amended, expires on June 30, 2024.
As of June 30, 2021 and 2020, the Organization has net related -party receivables (payables) of
$17,611 and ($32,739), respectively, in the accompanying statements of financial position. These
amounts do not bear interest, are not collateralized and have no stated repayment terms.
16
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
September 30, 2021
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Newport Beach & Company (the
"Organization") as of and for the year ended June 30, 2021, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting ("internal control") as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis. A reasonable possibility exists when the
likelihood of an event occurring is either reasonably possible or probable as defined as follows:
• Reasonably possible. The chance of the future event or events occurring is more than remote
but less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses.
Given these limitations, during out audit we did not identify any deficiencies in internal controls that
we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
kMT Ck ,wt c ►" LLP
KMJ Corbin & Company LLP
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmlpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
KMJ1Corbin &
Company
Business Advisors Tax and Audit
September 30, 2021
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Newport Beach & Company (the "Organization") as
of and for the year ended June 30, 2021, and have issued our report thereon dated September 30,
2021. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 20, 2021 our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, as part of our audit, we
considered the internal control of the Organization solely for the purpose of determining our
audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated September 7, 2021.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmlpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Newport Beach & Company
September 30, 2021
Page 2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the
Organization's management has been responsible for (a) making all management decisions and
performing all management functions; (b) assigning a competent individual to oversee the
services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting
responsibility for the results of the services performed; and (e) establishing and maintaining
internal controls, including monitoring ongoing activities.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU 2014-09 — Revenue from Contracts with
Customers, there have been no initial selection of accounting policies and no changes in
significant accounting policies or their application during the year ended June 30, 2021. No
matters have come to our attention that would require us, under professional standards, to inform
you about (1) the methods used to account for significant unusual transactions and (2) the effect
of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's current judgments. Those judgments are normally based on
knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
markedly from management's current judgments. Significant estimates made by the
Organization's management include, but are not limited to, the sufficiency of its cash to fund
operations for the next twelve months, the collectability of accounts receivable, the
recoverability of long-lived assets, and the allocation of expenses to program activities and
general and administrative.
• Management's estimate of the sufficiency of its cash and investment resources to fund
operations for the next twelve months is based on the Organization's forecast of future
income and obligations.
Newport Beach & Company
September 30, 2021
Page 3
• Management's estimate of the collectability of accounts receivables is based on assessing
the potential uncollectible receivables outstanding using the specific identification
method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose of the expenditures incurred during the
year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures
affecting the Organizations financial statements relate to related -party transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. There were no uncorrected misstatements during the year ended June 30,
2021.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. There were no material corrected misstatements that we identified as a result of our
audit procedures that were brought to the attention of, and corrected by, management.
Newport Beach & Company
September 30, 2021
Page 4
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
attached letter dated September 30, 2021.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss
a variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as the Organization's auditors.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
kMT ckk-,V,j Ca"n L-P
KMJ Corbin & Company LLP
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION
For The Years Ended June 30, 2021 and 2020
with
INDEPENDENT AUDITORS' REPORT THEREON
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpaxom
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statements of Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-19
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source ................................... 20
Schedule Il — Statement of Activities by Funding Source ............................................... 21
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmipartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
in J'
KMCompare
Y
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-profit
organization) (the "Organization"), which comprise the statements of financial position as of June
30, 2021 and 2020, and the related statements of activities and cash flows for the years then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audits 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 knnipartnerscpa.conn
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Visit Newport Beach Inc. as of June 30, 2021 and 2020, and the changes
in its net assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter - Related Party Transactions
As discussed in Note 9 to the financial statements, Visit Newport Beach Inc. has significant
transactions with a related non-profit organization. Our opinion is not modified with respect to this
matter.
Other Matter
As discussed in Note 2 to the financial statements, the Organization changed its method for revenue
recognition in 2021 as a result of the adoption of the amendments to the Financial Accounting
Standards Board Accounting Standards Codification resulting from Accounting Standards Update
2014-09, Revenue from Contracts with Customers, effective July 1, 2020. Our opinion is not
modified with respect to this matter.
Other Matter - Supplemental Information
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as
a whole. The supplemental information contained in Schedules I and II on pages 20-21 is presented
for purposes of additional analysis and is not a required part of the 2021 financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the 2021 financial statements. The
information has been subjected to the auditing procedures applied in the audit of the 2021 financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the 2021 financial statements
or the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the 2021 financial statements as a whole.
kM-' Ckk4." � 15Y�Lnl L-P
KMJ Corbin & Company LLP
Irvine, California
September 30, 2021
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2021 2020
ASSETS
Current assets:
Cash and cash equivalents $ 5,918,574 $ 1,698,312
Short-term investments - 2,606,273
Accounts receivable - 145,623
Related -party receivables, net - 32,739
Prepaid expenses and other current assets 182,475 197,685
Total current assets 6,101,049 4,680,632
Property and equipment, net 19,541 31,767
Website development costs, net - 96,628
Deposits and other assets 9,619 9,619
$ 6,130,209 $ 4.818.646
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable
$ 100,796
$ 91,351
Related party payables, net
17,611
-
Accrued expenses
41,041
33,340
Accrued payroll and related expenses
74,727
27,510
Group booking incentive reserve
6,500
31,300
Loan payable, current portion
3,256
-
Total current liabilities
243,931
183,501
Deferred rent, net of current portion
3,071
22,123
Loan payable, net of current portion
146,024
150,000
Total liabilities
393,026
355,624
Commitments and contingencies
Net assets without donor restrictions 5,737,183 4,463,022
$ 6,130,209 $ 4.818.646
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2021 2020
Support and revenues:
Service fee revenues $ 4,757,188 $ 9,412,997
Interest income 3,677 25,118
Other income 22,800 10,000
Total support and revenues 4,783,665 9,448,115
Expenses:
Marketing (including $1,248,512 and $2,129,382
to Newport Beach & Company during 2021
and 2020, respectively — see Note 9) 2,310,049 5,836,561
Salaries and benefits 799,805 1,392,718
Other 290,796 470,634
Depreciation and amortization 108,854 107,788
Total expenses 3,509,504 7,807,701
Change in net assets without donor restrictions 1,274,161 1,640,414
Net assets without donor restrictions, beginning of year 4,463,022 2,822,608
Net assets without donor restrictions, end of year $ 5,737,183 $ 4.463.022
See accompanying notes to financial statements
4
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2021
2020
Cash flows from operating activities:
Change in net assets without donor restrictions
$ 1,274,161
$ 1,640,414
Adjustments to reconcile change in net assets without
donor restrictions to net cash provided by operating
activities:
Depreciation and amortization
108,854
107,788
Accrued interest income
887
22,639
Changes in operating assets and liabilities:
Accounts receivable
145,623
(145,623)
Related -party receivables/payables, net
50,350
(140,085)
Prepaid expenses and other current assets
15,210
119,811
Accounts payable
9,445
(10,723)
Accrued expenses
7,701
11,380
Accrued payroll and related expenses
47,217
(197,459)
Group booking incentive reserve
(24,800)
(66,906)
Deferred rent
(19,052)
3,773
Net cash provided by operating activities
1,615,596
1,345,009
Cash flows from investing activities:
Purchases of investments (6,466,614) (4,756,191)
Proceeds from sales/maturities of investments 9,072,000 3,423,000
Website development costs - (39,735)
Purchases of property and equipment - (11,805)
Net cash provided by (used in) investing activities 2,605,386 (1,384,731)
Cash flows from financing activities:
Proceeds from loan - 150,000
Payments on loan payable (720) -
Net cash (used in) provided by financing activities (720) 150,000
Net increase in cash and cash equivalents 4,220,262 110,278
Cash and cash equivalents at beginning of year 1,698,312 1,588,034
Cash and cash equivalents at end of year $ 5,918,574 $ 1.698.312
Supplemental disclosure of cash flow information:
Cash paid during the year for interest $ 4,046 $ -
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1— ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the laws
of the State of California.
Transient Occupancy Tax("TOT")
The Organization currently has an agreement ("TOT Agreement") with the City of Newport Beach
(the "City") through December 31, 2024 to promote tourism and serve the needs of visitors to the
City. Under the terms of the TOT Agreement, the Organization is responsible to develop, plan,
carry out and supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to the City as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized as revenue when received. Adjustments to
monthly revenues paid during the year ended June 30, 2020 have been recorded as accounts
receivable as of June 30, 2020, comprising 38% of the accounts receivable. There were no
adjustments noted as of June 30, 2021.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease the
percentage of TOT paid to the Organization) as part of its once -annual budget adoption process
for any reason after notice to the Organization and an opportunity for the Organization to formally
comment on the adjustment. For the years ended June 30, 2021 and 2020, the Organization
received approximately 65% and 55%, respectively, of its service fee revenues from the City
through the TOT. The City has the right to terminate the TOT Agreement, without cause, by giving
the Organization 365 days' written notice of its intention to terminate. Should the City reduce or
stop its funding to the Organization due to the Organization's default or termination of the TOT
Agreement, the Organization's operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, and expires on January 31, 2024, pursuant to the Management District Plan, as amended
(the "Plan"). The NBTBID is funded by assessments levied on participating lodging businesses
within a specified district. The assessments are restricted for use for sales promotion and
marketing programs to market the City as a tourist, meeting and event destination as outlined in
to
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1— ORGANIZATION, continued
the Plan. Either party may terminate this agreement by providing the other party ninety calendar
days' written notice prior to the effective date of termination. As the Organization is not entitled
to its share of the assessments collected until paid by the City, amounts are recognized as revenue
when received. For the years ended June 30, 2021 and 2020, the Organization received
approximately 35% and 45%, respectively, of its service fee revenues from the City through TBID
assessments. Adjustments to monthly revenues paid during the year ended June 30, 2020 have
been recorded as accounts receivable as of June 30, 2020, comprising 62% of the accounts
receivable. There were no adjustments noted as of June 30, 2021.
As of June 30, 2021 and 2020, the NBTBID is represented by nine (9) hotels within the City of
Newport Beach which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the
receipts annually for the collection of the assessments and disbursements of the NBTBID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions — Net assets that are not subject to donor -imposed stipulations.
These assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions — Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
As of and for the years ended June 30, 2021 and 2020, the Organization had no net assets with
donor restrictions.
VA
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
Li uidi
In December 2019, a novel strain of coronavirus disease ("COVID-19") was first reported in
Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization
declared COVID-19 a global pandemic. The extent of COVID-19's effect on the Organization's
operational and financial performance will depend on future developments, including the duration,
spread and intensity of the pandemic, all of which are uncertain and difficult to predict considered
the rapidly evolving landscape. The Organization is currently analyzing the potential impacts to
all of its business segments. At this time, it is not possible to determine the magnitude of the overall
impact of COVID-19 on the Organization. However, it could have a material adverse effect on the
Organization's financial condition, liquidity, results of operations, and cash flows. In the short
term, one of the impacts of the pandemic is that the Organization's revenues have declined, but
the Organization cannot predict whether this decline is temporary or not. During the year ended
June 30, 2021, the Organization took certain cost cutting measures including reducing
discretionary marketing and other expenses, and reducing payroll through pay cuts, furloughs, and
reduction in its workforce. The Organization believes these measures, along with its existing cash
and cash equivalents, will be sufficient to cover its cash flow requirements for at least the next
twelve months from the date of issuance of these financial statements (see Note 3). However, there
can be no assurance that the Organization will not use its existing capital resources sooner than
currently expected.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the sufficiency of its cash and investment resources to
fund operations for the next twelve months, the collectability of receivables, the recoverability of
long-lived assets, fair value of investments and the allocation of expenses to program activities
and general and administrative. Actual results may differ from those estimates.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash and cash
equivalent balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. At June 30, 2021,
the Organization had approximately $5,258,000 of uninsured cash and cash equivalent balances.
The Organization periodically reviews the quality of the financial institutions it has deposits with
to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. There were no accounts receivable as of the year ended June 30, 2021. At
June 30, 2020, the Organization considered its accounts receivable to be fully collectible and
accordingly did not record an allowance for doubtful accounts.
As of June 30, 2020, one customer accounted for 100% of the Organization's total accounts
receivable balance.
Investments and Fair Value Measurements
Investments and cash equivalents consist of U.S. Treasury Bills which are carried at amortized
cost, which approximates fair value.
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal market,
the most advantageous market for the asset or liability, in an orderly transaction between market
participants on the measurement date. Accounting guidance establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs in priority that
may be used to measure fair value:
Level 1Quoted prices in active markets for identical assets or liabilities;
0
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Level 2—Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
The fair value of the Organization's U.S. Treasury Bills are based partially upon quoted prices in
markets that are not active or inputs which are observable, either directly or indirectly, for
substantially the full term of the assets. These instruments have been classified within Level 2 of
the valuation hierarchy.
As of June 30, 2020, the Organization's investments measured at fair value on a recurring basis
were as follows:
June 30. 2020
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Short-term investments:
U.S. Treasury Bills $ - $ 2,606,273 $ -
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Website Development Costs
The Organization accounts for the costs of developing its mobile apps and websites by capitalizing
the costs during the application development stage when it is probable that the project will be
completed and the property will be used to perform the function intended. Website development
costs are amortized on a straight-line basis over their estimated useful lives when completed, which
are typically the earlier of approximately three years or term based on estimated disposal date. The
recoverability of intangible assets is evaluated periodically, taking into account events or
circumstances that warrant revised estimates of useful lives or that indicate that impairment exists.
For the years ended June 30, 2021 and 2020, the Organization capitalized website development
costs of $0 and $39,735, respectively.
For the years ended June 30, 2021 and 2020, the Organization recorded amortization expense on
website development costs totaling $96,628 and $90,046, respectively.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2021 and 2020, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
Group Booking Incentive
The Organization has established an incentive program for businesses by paying for certain costs
of conferences and group meetings held in Newport Beach hotels in order to attract businesses and
groups to the City. Costs are considered incurred upon the reservation of the hotel for future
meetings. As of June 30, 2021 and 2020, group booking accruals were $6,500 and $31,300,
respectively.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other local
businesses involved in the tourism industry in Newport Beach. All businesses visited are also
sponsors of the Organization. Many of the Organization's sponsors contribute materials, such as
meals and rooms, in connection with this program. During the years ended June 30, 2021 and
2020, the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
contributions as they do not meet the required criteria.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2021 and 2020,
the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2021 and 2020, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. federal, state or local income tax examinations by
tax authorities for years before 2017.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
On July 1, 2020, the Organization adopted Accounting Standards Update ("ASU") 2014-09,
Revenue from Contracts with Customers, as codified in Accounting Standards Codification
("ASC") 606, by applying the modified retrospective method for all contracts. The Organization
evaluated its revenue streams to identify whether each stream would be subject to the provisions
of ASC 606 and any differences in the timing, measurement, or presentation of revenue recognition
compared to ASC 605, Revenue Recognition ("ASC 605"). Based on the assessment of the
Organization's revenue streams, the pattern and timing of recognition of the Company's revenues
under ASC 606 are similar to the manner in which the Company previously recognized revenue
under ASC 605, so there was no effect of the Organization's adoption of ASC 606.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the lease
rights and obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. ASU 2016-02, as
amended, is effective for reporting periods beginning after December 15, 2021, with early adoption
permitted. While still evaluating this update, the Organization expects the adoption of this update
to have a material effect on its financial condition due to the recognition of the lease rights and
obligations as assets and liabilities. The Organization does not expect this update to have a material
effect on its results of operations and cash flows.
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In September 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-
07, Presentation and Disclosures by Not -for -Profit Entities for Contributed Nonfinancial Assets
(Topic 958), which requires the Organization to change its financial statement presentation and
disclosure of contributed nonfinancial assets, or gifts -in -kind. ASU No. 2020-07 defines gifts -in -
kind as contributed nonfinancial assets donations made for goods or services the Organization
would purchase in the normal course of business. Gifts -in -kind of tangible property include items
like operating facilities, utilities, office furniture, and supplies provided to the Organization; items
donated to the Organization to be auctioned through charitable events; and items used in program
activities, such as medical supplies, building supplies, appliances, and fixtures. Intangible gifts -in -
kind include items like copyrights, patents, and royalties; specialized volunteer services, such as
those from nurses for medical organizations or project managers and builders for construction
projects; and expertise, such as accounting, legal, and consulting services. ASU No. 2020-07 is
effective for the Organization for fiscal year 2022. Early adoption is permitted. The Organization
is currently evaluating the impact that the adoption of ASU No. 2020-07 will have on its financial
statements.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2021, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2021, the Organization has $5,918,574 of financial assets available within one year of
the statement of financial position date to meet cash needs for general expenditures consisting of
cash and cash equivalents of $5,918,574. None of the financial assets are subject to donor or other
contractual restrictions that make them unavailable for general expenditures within one year of the
statement of financial position. Prior to COVID-19, the Organization had a goal to maintain
financial assets, which consist of cash, cash equivalents and short-term investments, on hand to
meet 90 days of normal operating expenses, which are, on average, approximately $395,000 per
month. The Organization has a policy to structure its financial assets to be available as its general
expenditures, liabilities, and other obligations come due. The Organization invests cash in excess
of daily requirements in various short-term treasury instruments.
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 3 — LIQUIDITY AND AVAILABILITY, continued
Funding for the Organization is dependent on the hotel room nights booked in certain Newport
Beach hotels each year and the subsequent portion of the TOT that is allocated through the City to
the Organization and the portion of the TBID assessments that are sent to the Organization from
the TBID participants. Annual revenue fluctuates depending on annual visitors to Newport Beach.
As a result, the Organization closely monitors the monthly projected and received revenue to
determine if any change needs to be made to budgeted annual expenditures.
As discussed in Note 2, in response to COVID-19, the Organization has performed an analysis to
determine whether it will have sufficient cash to fund operations for the next 12 months. Based on
budgeting for necessary expenses and obligations due along with minimal service fee revenues as
a result of the impact of COVID-19 on hotel stays, the Organization has concluded that it will have
sufficient cash to fund operations for at least 12 months from the date of issuance of these financial
statements.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2021 2020
Leasehold improvements $ 38,468 $ 38,468
Computer equipment 40,516 40,516
Office furniture and fixtures 136,812 136,812
215,796 215,796
Less accumulated depreciation and amortization (196,255) (184,029)
$ 19,541 $ 31.767
For the years ended June 30, 2021 and 2020, the Organization recorded depreciation expense on
property and equipment totaling $12,226 and $17,742, respectively.
15
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2021 and 2020 are as follows:
2021
Program General and 2020
Activities Administrative Total Total
(Summarized)
Salaries and benefits:
Salaries
$ 453,995 $
131,603
$ 585,598
$ 1,074,593
Payroll taxes and employee benefits
165,486
48,721
214,207
318,125
Total salaries and benefits
619,481
180,324
799,805
1,392,718
Other expense:
Marketing
1,974,684
335,365
2,310,049
5,836,561
Office lease
88,607
29,536
118,143
116,808
Repairs and maintenance
-
18,683
18,683
24,614
Insurance
-
7,651
7,651
9,426
Office supplies
-
3,518
3,518
10,869
Equipment and equipment rental
9,699
21,130
30,829
34,518
Postage and other dues and fees
58,367
4,876
63,243
115,853
Meeting and education
5,181
11,166
16,347
46,321
Professional fees and services
-
26,304
26,304
59,460
Bad debt
-
557
557
31,500
Interest
-
4,046
4,046
-
Depreciation and amortization
96,628
12,226
108,854
107,788
Travel and related
1,475
-
1,475
21,265
Total functional expenses
$ 2.854.122 $
655.382
$ 3.509.504
$ 7.807.701
The Organization incurred expenses related to program activities totaling approximately
$6,554,000 for the year ended June 30, 2020.
NOTE 6 - LOAN AGREEMENT
On June 3, 2020, the Company entered into an Economic Injury Disaster Loan (the "Loan")
administered by the U.S. Small Business Administration. The loan has an original principal
balance of $150,000, bears interest at 2.75% per annum and matures on June 3, 2050. The loan
requires monthly payments beginning in June 2021. Payments are first applied to interest accrued
and then principal. The amount borrowed under the Loan is guaranteed by substantially all of the
Organization's assets. The Organization will use all the proceeds of this Loan solely as working
capital to alleviate economic injury caused by COVID-19. The Loan contains customary events of
default, and the occurrence of an event of default may result in a claim for the immediate
repayment of all amounts outstanding under the Loan.
16
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 6 — LOAN AGREEMENT, continued
Future minimum payments under the Organization's loan agreement are as follows:
Years Ending
June 30,
2022
$ 3,256
2023
3,731
2024
3,835
2025
3,942
2026
4,052
Thereafter
130.464
$ 149,280
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022, and rent, as amended, is payable between $8,359 and
$12,016 per month. As a result of the fourth amendment to this lease, the Organization assigned
its rights to Newport Beach & Company ("NB & Co."), a related party. Under the terms of this
lease, this assignment does not relieve the Organization of its lease obligations. As a result, the
Organization continues to be liable for future rent payments. The facility lease contains a five-year
extension option at the end of the lease term.
Total rent expense incurred by the Organization under operating leases was approximately
$118,000 and $117,000 for the years ended June 30, 2021 and 2020, respectively, and is included
in other expenses. Such amounts are net of the amounts paid by the related party pursuant to the
Agreement disclosed in Note 9.
Future minimum payments due on the Organization's allocated portion of the non -cancelable
facility lease commitment in excess of one year are as follows:
Years Ending
June 30,
2022 $ 133,000
2023 31,000
$ 164,000
17
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Commitments
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $287 to $5,000 per month over various
terms with 20 months or less remaining at June 30, 2021 and 24 months or less remaining at June
30, 2020. From these commitments, the Organization incurred approximately $253,000 and
$504,000 of expenses for the years ended June 30, 2021 and 2020, respectively, which are recorded
in marketing expenses in the accompanying statements of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on June 1,
2014 through December 31, 2024, to the City to be spent on programs or activities that benefit the
public, which is recorded in marketing expenses for the years ended June 30, 2021 and 2020. Due
to the rights of termination per the agreement, these commitments are considered due each June
and December.
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified parry, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. Pursuant to the TOT Agreement, the Organization also indemnifies
the City and all of its related boards, councils, officers, employees, and volunteers from claims
related to the conduct of the Organization or any of its officers, employees, or associated
individuals. In connection with its facility lease, the Organization has indemnified its lessor for
certain claims arising from the use of the facilities. The duration of the guarantees and indemnities
varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not
provide for any limitation of the maximum potential future payments the Organization could be
obligated to make. Historically, the Organization has not been obligated nor incurred any
payments for these obligations and, therefore, no liabilities have been recorded for these
indemnities and guarantees in the accompanying statements of financial position.
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provided
matching contributions based upon employees' voluntary contributions and the Organization's
contributions. Effective March 31, 2020, the Organization amended the 401(k) retirement plan to
exclude employer matching contributions. Effective December 13, 2020, the Organization
amended the 401(k) retirement plan to reinstate employer matching contributions. The total
expense recorded by the Organization during the years ended June 30, 2021 and 2020 was
approximately $28,000 and $73,000, respectively, and is included in salaries and benefit expenses
in the accompanying statements of activities.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2021 and 2020, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, NB & Co., specializes in marketing
and promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB & Co.
as an exclusive provider of services that the Organization shall need to carry out its mission and
obligations to the City. In consideration for these services, the Organization agreed to pay NB &
Co. annual fees totaling $108,000 for the years ended June 30, 2021 and 2020. The Organization
has also agreed to reimburse NB & Co. for all reasonable expenses incurred by it in carrying out
its duties to the Organization, including rent and related facility costs, payroll and related benefits,
and other direct marketing costs. For the years ended June 30, 2021 and 2020, the Organization
incurred $1,140,512 and $2,021,382, respectively, from NB & Co. for these costs, which are
recorded in marketing expenses in the accompanying statements of activities. NB & Co.'s costs
for the years ended June 30, 2021 and 2020 were broken out as follows: $33,305 and $140,093,
respectively, of direct marketing, $770,095 and $1,556,505, respectively, of salaries and benefits,
and $337,112 and $324,784, respectively, of other (including rent and related facility costs). The
Agreement, as amended, expires on June 30, 2024.
As of June 30, 2021 and 2020, the Organization has net related -party (payables) receivables of
$(17,611) and $32,739, respectively, in the accompanying statements of financial position. These
amounts do not bear interest, are not collateralized, and have no stated repayment terms.
19
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2021
Current assets:
Cash and cash equivalents
Prepaid expenses and other
current assets
Total current assets
Property and equipment, net
Deposits and other assets
Current liabilities:
TOT* TBID
$ 3,723,457 $ 2,195,117
44,663 137,812
3,768,120 2,332,929
11,038 8,503
9,619 -
$ 3.788.777 $ 2.341.432
Accounts payable
$ 79,271
$ 21,525
Related -party payables, net
17,461
150
Accrued expenses
5,000
36,041
Accrued payroll and related
expenses
-
74,727
Group booking incentive reserve
-
6,500
Loan payable, current portion
3,256
-
Total current liabilities
104,988
138,943
Deferred rent, net of current portion
-
3,071
Loan payable
146,024
-
Total liabilities
251,012
142,014
Net assets without donor restrictions
3.537.765
2.199.418
$ 3.788.777 $ 2.341.432
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 5,918,574
- 182,475
- 6,101,049
- 19,541
9,619
$ $ 6.130.209
$ - $ 100,796
- 17,611
- 41,041
- 74,727
- 6,500
- 3,256
- 243,931
- 3,071
- 146,024
- 393,026
5,737,183
20
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2021
Support and revenues:
Service fee revenues
Interest income
Other income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
Other
Depreciation and amortization
Total expenses
Change in net assets without donor
restrictions
Net assets, beginning of year
Net assets, end of year
TOT* TBID
$ 3,075,276 $ 1,681,912
2,183 1,494
- 22,800
3,077,459 1,706,206
1,936,510 373,539
- 799,805
53,886 236,910
77.120 31.734
2,067,516 1,441,988
1,009,943 264,218
2,527,822 1,935,200
$ 3.537.765 $ 2.199.418
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 4,757,188
- 3,677
- 22,800
4,783,665
2,310,049
799,805
290,796
108.854
3,509,504
1,274,161
4,463,022
21
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
September 30, 2021
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Visit Newport Beach, Inc.
(the "Organization") as of and for the year ended June 30, 2021, in accordance with auditing
standards generally accepted in the United States of America, we considered the Organization's
internal control over financial reporting ("internal control") as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Organization's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A reasonable possibility exists
when the likelihood of an event occurring is either reasonably possible or probable as defined as
follows:
• Reasonably possible. The chance of the future event or events occurring is more than
remote but less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph
and was not designed to identify all deficiencies in internal control that might be material
weaknesses. Given these limitations, during out audit we did not identify any deficiencies in
internal controls that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
"j, C&&-Vv►, t *n ALP
KMJ Corbin & Company LLP
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
in J'
KMCompare
Y
Business Advisors Tax and Audit
September 30, 2021
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Visit Newport Beach Inc. (the "Organization") as of
and for the year ended June 30, 2021, and have issued our report thereon dated September 30,
2021. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 20, 2021, our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial statements
that have been prepared by management with your oversight are presented fairly, in all material
respects, in accordance with accounting principles generally accepted in the United States of
America. Our audit of the financial statements does not relieve you or management of its respective
responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, as part of our audits, we
considered the internal control of the Organization solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
In conjunction with the annual audit, we also performed an examination of management's assertion
included in the Management Statement Regarding Compliance with Certain Provisions of the
Agreement Between the City of Newport Beach and the Organization for Tourism Promotion,
Branding, and Marketing Services (the "Agreement"), that the Organization complied with the
provisions in Section 4 of the Agreement regarding the 2021 Expenditures Report, summarizing
the expenditures of funds received pursuant to the Agreement during the year ended June 30, 2021.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmipartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
September 30, 2021
Page 2
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated September 7, 2021.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the Organization's
management has been responsible for (a) making all management decisions and performing all
management functions; (b) assigning a competent individual to oversee the services; (c) evaluating
the adequacy of the services performed; (d) evaluating and accepting responsibility for the results
of the services performed; and (e) establishing and maintaining internal controls, including
monitoring ongoing activities.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU 2014-09 — Revenue from Contracts with
Customers, there have been no initial selection of accounting policies and no changes in significant
accounting policies or their application during the year ended June 30, 2021. No matters have
come to our attention that would require us, under professional standards, to inform you about (1)
the methods used to account for significant unusual transactions and (2) the effect of significant
accounting policies in controversial or emerging areas for which there is a lack of authoritative
guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly
from management's current judgments. Significant estimates made by the Organization's
management include, but are not limited to, the sufficiency of its cash and investment resources to
fund operations for the next twelve months, the collectability of accounts receivable, the
recoverability of long-lived assets, fair value of investments and the allocation of expenses to
program activities and general and administrative.
September 30, 2021
Page 3
• Management's estimate of the sufficiency of its cash and investment resources to fund
operations for the next twelve months is based on the Organization's forecast of future
income and obligations.
• Management's estimate of the collectability of accounts receivables is based on assessing
the potential uncollectible receivables outstanding using the specific identification method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
• Management's estimate of the fair value of investments is based on the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal,
or in the absence of a principal market, the most advantageous market for the asset or
liability, in an orderly transaction between market participants on the measurement date.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose and nature of the expenditures incurred
during the year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting
the Organization's financial statements relate to disclosure of COVID-19 impacts including
liquidity and related -party transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance
of the audit.
September 30, 2021
Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods on
the relevant classes of transactions, account balances or disclosures, and the financial statements
as a whole. There were no uncorrected misstatements during the year ended June 30, 2021.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
There were no material corrected misstatements that we identified as a result of our audit
procedures that were brought to the attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in a
separate letter dated September 30, 2021.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed resulted
in a condition to our retention as the Organization's auditors.
September 30, 2021
Page 5
Supplemental Information
The supplementary information contained in Schedules I and II of the financial statements is
presented for purposes of additional analysis and is not a required part of the 2021 financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the 2021 financial statements.
The information has been subjected to the auditing procedures applied in the audit of the 2021
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the 2021
financial statements or the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone other
than these specified parties.
Very truly yours,
kMJ- r' n t 10*Ln- LLP
KMJ Corbin & Company LLP
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2021
with
INDEPENDENT AUDITORS' REPORT THEREON
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc. (the "Organization") complied with the provisions in
Section 4 of the Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services (the "Agreement") regarding the
attached 2021 Expenditures Report, summarizing the expenditures of funds received pursuant to
the Agreement during the period July 1, 2020 to June 30, 2021. The Organization's management
is responsible for its assertion. Our responsibility is to express an opinion on management's
assertion about the Organization's compliance with the specified requirements based on our
examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion
about compliance with the specified requirements is fairly stated, in all material respects. The
nature, timing, and extent of the procedures selected depend on our judgment, including an
assessment of the risks of material misstatement of management's assertion, whether due to
fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide
a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Organization's compliance with
the specified requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the attached 2021 Expenditures Report for
the year ended June 30, 2021 is fairly stated, in all material respects.
This report is intended solely for the information and use of Visit Newport Beach, Inc. and the
City of Newport Beach and is not intended to be and should not be used by anyone other than
these specified parties.
ITT t 10hn La
KMJ Corbin & Company LLP
Irvine, California
September 30, 2021
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmlpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
DI
VISIT
NEW PORT
BEACH
CALIFORNIA
Management Statement Regarding Compliance With Certain Provisions of the Agreement Between
the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and
Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are responsible for
complying with the provisions of Section 4 of the Agreement Between the City of Newport Beach and Visit
Newport Beach Inc. (collectively, the "Parties") for Tourism Promotion, Branding, and Marketing Services
(the "Agreement") in that funds received by the Organization pursuant to this Agreement were expended in
accordance with this Agreement. We are responsible for establishing and maintaining effective internal
controls over compliance with the provisions of Section 4 of the Agreement_ We have performed an
evaluation of the Organization's compliance with the provisions of Section 4 of the Agreement regarding
funds expended during the year ended June 30, 2021, as summarized in the attached 2021 Expenditures
Report. Based on this evaluation, we assert that the Organization was in compliance with the provisions of
Section 4 of the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise a program
to market and promote the Newport Beach brand and to promote tourism in, and serve the needs of, visitors
to Newport Beach as well as increase the amount of TOT collected through their promotional activities
(`Services'). Subject to the foregoing sentence, the Services shall, at a minimum, include the following: (a)
the maintenance of suitable office space and the employment of competent personnel to carry out the
promotional, branding and marketing duties; (b) the preparation of brochures, publications, guides, on-line
promotions, social network efforts, and other marketing materials and information that inform prospective
tourists and visitors of the recreational activities, cultural assets, shopping and dining opportunities, night-
time stay opportunities, and natural beauty of Newport Beach; (c) the dissemination of information described
in this section by way of the media, direct mail, handouts, social networking, websites, smart phone
applications, or other means of distribution; and (d) the development and implementation of specific
marketing programs designed to increase awareness of the Newport Beach brand and to increase business
and visitor trade in Newport Beach; and (e) any additional Services when proposed by the City which are
consistent with the promotion of tourism and the Newport Beach brand which are mutually agreeable and
acceptable to the Parties."
Vi
!:
a
A
VISIT NEWPORT BEACH, INC.
2021 Expenditures Report
July 1, 2020 -
June 30, 2021
2021 Expenses
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
173
64125 - Computer Software (non-deprec)
5,844
64130 - Voice and Data - Office
79
64145 - Shipping Charges
238
64150 - Bank Fees
290
64160 - Membership Dues
29,888
64170 - Team Meetings
3,750
64175 - Governance Meeting Expenses
750
Total Operating Expenses
41,012
Insurance
63100 - General Liability Insurance
1,337
63300 - Board of Directors Insurance
2,488
Total Insurance
3,825
Professional Fees
64207 - Bloggers
5,121
64201 - Audit Fees
4,000
64202 - Tax Preparation Fees
1,000
Total Professional Fees
10,121
Miscellaneous Expense
64350 - Interest Expense
4,046
Total Miscellaneous Expense
4,046
Total General and Administrative
59,004
Advertising Expenses
66101 - Advertising - Purchased
252,081
66102 - Advertising - Local Events
480
66121 - Promotional Gift Cards
1,250
66202 - Ad Production
19,436
66203 - Creative Design/Development
61,010
66205 - Photography/Video Production
63,618
66212 - Community Sponsorships
150,000
Total Advertising Expenses
547,875
Marketing Expenses
Community Relations
67101 - Research
29,540
67102 - Christmas Boat Parade
19,936
67105 - Awards
450
67107 - Promotional Items
236
Total Community Relations
50,162
Marketing Collateral
67312 - Collateral Distribution
7,650
Total Marketing Collateral
7,650
Digital Marketing
67501 - Social Media
38,633
67502 - Website Maintenance
45,956
67503 - Online Search Advertising
46,273
67504 - Digital Advertising
11,212
67511 - Digital Lifestyle Channel Production
250
66211 - CRM Maintenance
19,204
Total Digital Marketing
161,528
Communications/Public Relations
67601 - Media Services
12,816
67602 - Media FAM Tours
1,234
67607 - Media Relations
4,518
67608 - Digital Assets/Media Library
4,794
Total Communications/Public Relations
23,362
Total Marketing Expenses
242,702
International Marketing Initiatives
67401 - International Brand Awareness Fees
-
67412 - International Brand Events
300
Total International Marketing Initiatives
300
NB&Company Fees
68001 - NB&Co Fees
1,140,512
Total NB&Company Fees
1,140,512
Total Expenses 1,990,393
Other Expenditures:
Fixed asset additions capitalized
Website development costs capitalized
Change in other prepaid expenses and current
liabilities, net (58,086)
(58,086)
$ 1,932,307
NOTES:
A Included in this account are expenditures for or contributions to special events and not -for -profit
organizations in Newport Beach as follows:
Vendor Event Amount
City of Newport Beach Arts Sponsorship 150,000
$ 150,000
B Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense
Amount
Salaries/Benefits
$
690,712
Marketing Expenses
$
345,677
G&A Overhead
$
104,123
$
1,140,512
VISIT
NL IBPORT
BEACH
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating
Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64170
- Team Meetings
64180
- Education
64190
- Business Licensing and Fees
64300
- Depreciation Expense
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2021
Year To Date Year To Date
09/30/2021 09/30/2020
$ Variance Year over
1,072,787.99
366,482.12
706,305.87
1,072,787.99
366,482.12
706,305.87
40.98
68.62
(27.64)
40.98
68.62
(27.64)
1,072,828.97
366,550.74
706,278.23
103,658.72
110,661.17
(7,002.45)
5,817.15
0.00
5,817.15
3,160.00
2,640.00
520.00
14,410.07
8,728.13
5,681.94
0.00
283.65
(283.65)
127,045.94
122,312.95
4,732.99
24,869.17
24,126.50
742.67
100.00
139.03
(39.03)
1,724.67
2,190.36
(465.69)
341.55
336.47
5.08
4,830.86
3,988.86
842.00
15,295.10
0.00
15,295.10
150.00
363.48
(213.48)
565.03
640.94
(75,91)
47,876.38
31,785.64
16,090.74
496.63
245.05
251.58
312.66
30.41
282.25
600.00
600.00
0.00
1,439.16
843.66
595.50
6,622.54
4,335.00
2,287.54
5,801.00
6,296.03
(495.03)
1,803.01
1,957.59
(154.58)
1,500.00
720.00
780.00
206.97
352.98
(146.01)
150.92
0.00
150.92
139.68
57.78
81.90
(10.00)
0.00
(10.00)
16,515.60
16,942.27
(426.67)
313.24
77.04
236.20
3,156.62
499.20
2,657.42
205.33
0.00
205.33
1,213.44
1,414.35
(200.91)
VISIT
NL IBPORT
BEACH
CALIFORNIA
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
67004 - Marketing NBCo Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
67101 - Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Total Community Relations
Digital Marketing
67502 - Website Maintenance
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2021
Year To Date
09/30/2021
39R_14
Year To Date
09/30/2020
104.36
$ Variance Year over
293.78
40,864.94
34,475.72
6,389.22
49,073.64
30,334.86
18,738.78
49,073.64
30,334.86
18,738.78
2,663.50
3,036.38
(372.88)
1,769.34
2,488.29
(718.95)
4,432.84
5,524.67
(1,091.83)
1,706.32
535.61
1,170.71
27,000.00
27,000.00
0.00
0.00
(2,000.00)
2,000.00
28,706.32
25,535.61
3,170.71
700.32
123.95
31.03
25.89
165.32
1,046.51
124,124.25
0.00
0.00
0.00
3.80
0.00
3.80
95,874.66
700.32
123.95
31.03
22.09
165.32
1,042.71
28,249.59
10,434.95
0.00
10,434.95
(62.98)
181.90
(244.88)
0.00
468.98
(468.98)
1,500.00
0.00
1,500.00
11,871.97
650.88
11,221.09
2,000.00
0.00
2,000.00
2,000.00
0.00
2,000.00
11,459.06
0.00
11,459.06
0.00
3,307.50
(3,307.50)
0.00
6,636.09
(6,636.09)
19,399.00
28,550.00
(9,151.00)
30,858.06
38,493.59
(7,635.53)
32,858.06
38,493.59
(5,635.53)
3,452.48
0.00
3,452.48
49,625.00
2,687.52
46,937.48
1,133.59
2,483.73
(1,350.14)
54,211.07
5,171.25
49,039.82
22,448.00
0.00
22,448.00
VISIT
NL IBP RT
BEACH ()
CALIFORNIA
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2021
Year To Date Year To Date
09/30/2021 09/30/2020
$Variance Year over
66233 - Industry Partnerships
45,000.00
31,003.94
13,996.06
Total Sponsorships
67,448.00
31,003.94
36,444.06
Sales Initiatives
66207 - Site Inspections
2,921.26
20.83
2,900.43
66208 - Client Events
550.00
0.00
550.00
66209 - Database/Prospecting
53,370.77
8,908.36
44,462.41
Total Sales Initiatives
56,842.03
8,929.19
47,912.84
Total Direct Sales Initiatives
178,501.10
45,104.38
133,396.72
Customized Destination Support
66243 - Hotel Partner Booking Incentives
(2,500.00)
(6,000.00)
3,500.00
66247 - Partner Engagement Expenses
0.00
803.97
(803.97)
66248 - Group Marketing Initiatives
5,234.03
5,580.00
(345.97)
Total Customized Destination Support
2,734.03
383.97
2,350.06
Total Expenses
525,011.73
334,606.07
190,405.66
Net Income
547,817.24
31,944.67
515,872.57
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 7-1-21 to 9-30-21
Created On:
10/15/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking - California Bank and Ti
Account No: 5798822408
7/1/2021
V00150--Blue Shield of California
7/21 BlueShield
3,713.40
7/2/2021
V01143--The Irvine Company, LLC
7/21 Ste 130 Le
12,280.52
7/6/2021
V01842--Sterling Administration
PP7/02/21FSATBI
228.87
7/8/2021
V01190--Transamerica Retirement Solutions
PP 7/2/21 401(k
5,802.92
7/8/2021
V01225--US Travel Association
7553
8,812.50
7/8/2021
V01585--Destinations International
7551
1,565.00
7/8/2021
V01498--Newport Beach Country Club*
7550
500.00
7/8/2021
V00918--Premier Displays and Exhibits
7552
1,044.48
7/12/2021
V00604--Kim Kelley Productions
7555
2,000.00
7/12/2021
V01871--Saundra Scheneker
7554
452.05
7/13/2021
V01842--Sterling Administration
6/21FSAFeesTBID
35.00
7/19/2021
V01756--Tarsus Connect LLC
7556
3,950.00
7/20/2021
V01842--Sterling Administration
PP7/16/21FSATBI
228.87
7/20/2021
V00947--Hyatt Regency John Wayne Airport NB
7557
750.00
7/21/2021
V01872--Newport Print Services LLC
TBID Goal Poste
269.38
7/21/2021
V01190--Transamerica Retirement Solutions
PP 7/16/21 401(
6,595.62
7/21/2021
V01740--Choice Builder
8/21 Dental/Vis
476.08
7/22/2021
V01721--Wells Fargo Vendor Fin Sery
7558
239.56
7/28/2021
V00608--KMJ Corbin and Co.
7559
5,000.00
7/29/2021
V01143--The Irvine Company, LLC
8/21 Ste 130 Le
11,798.47
8/3/2021
V01842--Sterling Administration
PP7/30/21FSATBI
228.87
8/3/2021
V01621--AmTrust North America
7560
2,663.50
8/3/2021
V01876--Miglino Event Productions
7561
550.00
8/4/2021
V01190--Transamerica Retirement Solutions
PP 7/30/21 401(
6,629.86
8/4/2021
V00150--Blue Shield of California
8/21 BlueShield
3,713.40
8/6/2021
V00833--Orange County Tax Collector
2021-0272956TBI
205.33
8/9/2021
V00791--Noble Studios
7563
2,487.50
8/9/2021
V01038--Skyward Technical Solutions
7564
1,842.30
8/9/2021
V01563--Standard Insurance Company
7562
499.89
8/12/2021
V01842--Sterling Administration
7/21FSAFeesTBID
37.50
8/16/2021
V01030--Simpleview, Inc.
7565
18,500.00
8/18/2021
V01842--Sterling Administration
PP8/13/21FSATBI
228.87
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 7-1-21 to 9-30-21
Created On:
10/15/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
CBT TBID Checking - California Bank and Ti
Account No: 5798822408
8/18/2021
V01190--Transamerica Retirement Solutions
PP 8/13/21 401(
7,027.67
8/18/2021
V01474-- Rena issance Newport Beach
7568
1,200.00
8/18/2021
V01474-- Rena issance Newport Beach
7567
500.00
8/18/2021
V01474-- Rena issance Newport Beach
7566
750.00
8/23/2021
V01740--Choice Builder
9/21 Dental/Vis
476.08
8/24/2021
V00102--Balboa Bay Resort
7573
500.00
8/24/2021
V01721--Wells Fargo Vendor Fin Sery
7570
248.73
8/24/2021
V00302--Cvent, Inc.
7571
8,000.00
8/24/2021
V01083--Staples
7569
26.41
8/24/2021
V01030--Simpleview, Inc.
7572
84.22
8/26/2021
V01038--Skyward Technical Solutions
7574
3,043.96
8/26/2021
V00773--Newport Beach Marriott Hotel and Spa
7575
1,200.00
8/31/2021
V00102--Balboa Bay Resort
7576
5,000.00
8/31/2021
V01878--Carrie Audino Strain
7578
227.50
8/31/2021
V01879--Elizabeth Sheldon
7577
597.80
8/31/2021
V01842--Sterling Administration
PP8/27/21FSATBI
228.87
8/31/2021
V01190--Transamerica Retirement Solutions
PP 8/27/21 401(
7,027.67
8/31/2021
V01143--The Irvine Company, LLC
9/21 Ste 130 Le
12,280.52
9/1/2021
V00150--Blue Shield of California
9/21 BlueShield
3,713.40
9/1/2021
V01474-- Rena issance Newport Beach
7586
1,000.00
9/1/2021
V00773--Newport Beach Marriott Hotel and Spa
7582
10,000.00
9/1/2021
V00947--Hyatt Regency John Wayne Airport NB
7581
1,200.00
9/1/2021
V01474-- Rena issance Newport Beach
7585
1,200.00
9/1/2021
V01474-- Rena issance Newport Beach
7580
500.00
9/1/2021
V00767--Newport Beach Bayview Marriott
7584
750.00
9/1/2021
V00767--Newport Beach Bayview Marriott
7579
1,500.00
9/1/2021
V01564--Standard Insurance RAS Executive
7583
517.13
9/2/2021
V01570--Crowd Riff Inc.
7588
3,472.88
9/2/2021
V01563--Standard Insurance Company
7587
499.89
9/13/2021
V01842--Sterling Administration
8/21FSAFeesTBID
37.50
9/14/2021
V01190--Transamerica Retirement Solutions
PP 9/10/21 401(
7,027.67
9/14/2021
V01842--Sterling Administration
PP9/10/21FSATBI
228.87
Company Name:
Visit Newport Beach, Inc.
Report Name:
TBID Check Register - 7-1-21 to 9-30-21
Created On:
10/15/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
CBT TBID Checking - California Bank and Ti
Account No: 5798822408
9/14/2021
9/14/2021
9/16/2021
9/16/2021
9/16/2021
9/16/2021
9/21/2021
9/22/2021
9/24/2021
9/24/2021
9/24/2021
9/24/2021
9/24/2021
9/24/2021
9/27/2021
9/27/2021
9/27/2021
9/27/2021
9/28/2021
9/28/2021
9/29/2021
9/29/2021
9/30/2021
Total for CBT TBID Checking
Payee
Document No
Amount
V00608--KMJ Corbin and Co.
7589
4,000.00
V01564--Standard Insurance RAS Executive
7590
517.13
V01879--Elizabeth Sheldon
7592
1,306.55
V01721--Wells Fargo Vendor Fin Sery
7593
200.00
V00791--Noble Studios
7591
2,487.50
V01878--Carrie Audino Strain
7594
778.75
V01837--Philadelphia Indemnity Insurance Coml
7595
1,769.34
V01740--Choice Builder
10/21 Dental/Vi
476.08
V01544--Jennifer Brannon
Voided - PP 9-24-21 jb
-537.50
V01506--Jane Dryden
Voided - PP 9-24-21 jd
-185.25
V01450--Amanda Kliem
Voided - PP 9-24-21 ak
-186.51
V01506--Jane Dryden
PP 9-24-21 jd
185.25
V01544--Jennifer Brannon
PP 9-24-21 jb
537.50
V01450--Amanda Kliem
PP 9-24-21 ak
186.51
V01377--Newport Beach and Company
Q1_FY22 Marketi
27,000.00
V01498--Newport Beach Country Club*
7598
1,008.26
V01879--Elizabeth Sheldon
7596
1,373.75
V01878--Carrie Audino Strain
7597
507.50
V01218--UPS
9/21 Srvc/Trad a
119.09
V01038--Skyward Technical Solutions
7599
3,175.44
V01190--Transamerica Retirement Solutions
PP 9/24/21 401(
7,027.67
V01842--Sterling Administration
PP9/24/21FSATBI
228.87
V00150--Blue Shield of California
10/21 BlueShiel
3,713.40
239,085.84
VISIT
NEWPORT
BEACC!-i 6)
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61020 - Auto Allowance
61030 - Payroll Tax Expenses
61040 - Accrued PTO Expense
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 -Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101 - Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64160 - Membership Dues
64170 - Team Meetings
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
Total Office Lease and Expenses
Insurance
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2021
Year To Date Year To Date
08/31/2021 08/31/2020
$ Variance Year over
600,561.99
196,711.07
403,850.92
600,561.99
196,711.07
403,850.92
23.64
47.98
(24.34)
23.64
47.98
(24,34)
600,585.63
196,759.05
403,826.58
54,040.67
72,957.66
(18,916.99)
1,890.00
1,620.00
270.00
9,093.84
5,754.85
3,338.99
0.00
283.65
(283.65)
65,024.51
80,616.16
15,591.65
18,182.70
17,615.89
566.81
75.00
119.03
(44.03)
1,275.47
1,558.39
(282.92)
252.37
246.56
5.81
3,559.58
2,915.53
126.92
9,402.48
0.00
9,402.48
112.50
178.49
(65.99)
406.68
253.30
153.38
33,266.78
22,887.19
9,862.46
464.96
183.12
211.16
220.13
30.41
137.38
400.00
400.00
0.00
1,439.16
420.21
1,018.95
3,447.10
2,890.00
557.10
5,760.50
6,012.22
(287.72)
1,153.52
1,405.91
(252.39)
900.00
420.00
480.00
137.98
176.49
(38.51)
150.92
0.00
150.92
57.28
38.52
18.76
16,615.60
16,942.27
(326.67)
135.97
77.04
58.93
3,076.62
499.20
2,577.42
205.33
0.00
205.33
808.96
942.90
(133.94)
322.52
0.00
322.52
35,296.55
30,438.29
4,699.24
36,359.51
20,223.24
16,136.27
36,359.51
20,223.24
16,136.27
VISIT
NEWPORT
B E C I-i 6)
CALIFORNIA
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
67004 - Marketing NBCo Fees
64201 -Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65200 -Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
67101 - Research
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Total Community Relations
Digital Marketing
67502 - Website Maintenance
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2021
Year To Date Year To Date
08/31/2021 08/31/2020
2,663.50
3,036.38
0.00
2,488.29
2,663.50
5,524.67
459.88
349.49
0.00
27,000.00
0.00
(5,000.00)
0.00
(2,000.00)
459.88
20,349.49
700.32
0.00
123.95
0.00
31.03
0.00
0.00
3.80
165.32
0.00
1,020.62
3.80
75,800.06
76,539.49
6,134.95
0.00
(62.98)
68.83
0.00
468.98
1,500.00
0.00
1,437.02
537.81
2,000.00 0.00
2,000.00 0.00
$ Variance Year over
(372.88)
(2,488.29)
(2,861.17)
110.39
(27, 000.00)
5,000.00
2,000.00
(19,889.61)
700.32
123.95
31.03
(3.80)
165.32
1,016.82
(898.45)
6,134.95
(131.81)
(468.98)
1,500.00
7,034.16
2,000.00
2,000.00
8,971.56
0.00
8,971.56
0.00
4,424.06
(4,424.06)
19,399.00
5,000.00
14,399.00
28,370.56
9,424.06
18,946.50
30,370.56
9,424.06
20,946.50
2,145.58
0.00
2,145.58
37,310.00
2,687.52
34,622.48
73.26
1,439.25
(1,365.99)
39,528.84
4,126.77
35,402.07
20,550.00
0.00
20,550.00
45,000.00
30,965.00
14,035.00
65,550.00
30,965.00
34,585.00
1,887.42
20.83
1,866.59
550.00
0.00
550.00
49,404.22
8,908.36
40,495.86
51,841.64
8,929.19
42,912.45
156,920.48
44,020.96
112,899.52
VISIT
NEWPORT
EI-1 0
CALIFORNIA
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2021
Year To Date Year To Date
08/31/2021 08/31/2020
$ Variance Year over
(4,000.00)
(1,000.00)
(3,000.00)
0.00
803.97
(803.97)
5,226.03
5,580.00
(353.97)
1,226.03
5,383.97
(4,157.94)
370,180.39
239,409.64
130,770.75
230,405.24
(42,650.59)
273,055.83
VISIT
NLWPORT
BEACIA
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating
Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64170
- Team Meetings
64180
- Education
64300
- Depreciation Expense
Total Operating Expenses
Office Lease
and Expenses
62100
- Office Lease
Total Office Lease and Expenses
Insurance
63200
- Workers Compensation Insurance
63300
- Board of Directors Insurance
Total Insurance
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2021
Year To Date Year To Date
07/31/2021 07/31/2020
$ Variance Year over
263,875.04
61,305.65
202,569.39
263,875.04
61,305.65
202,569.39
12.96
26.48
(13.52)
12.96
26.48
(13.52)
263,888.00
61,332.13
202,555.87
42,151.70
35,254.16
6,897.54
620.00
600.00
20.00
4,236.56
21781.55
1,455.01
0.00
283.65
(283.65)
47,008.26
38,919.36
8,088.90
11,496.23
11,105.28
390.95
50.00
99.03
(49.03)
826.27
906.69
(80.42)
163.19
156.65
6.54
2,288.30
1,716.33
571.97
2,371.51
0.00
2,371.51
75.00
178.49
(103.49)
248.33
126.65
121.68
17,518.83
14,289.12
3,229.71
338.56
170.09
168.47
130.47
17.50
112.97
200.00
200.00
0.00
1,842.30
1,445.00
397.30
5,724.50
5,985.22
(260.72)
501.49
478.84
22.65
300.00
120.00
180.00
68.99
0.00
68.99
150.92
0.00
150.92
57.28
19.26
38.02
(10.00)
0.00
(10.00)
16,615.60
16,942.27
(326.67)
0.00
77.04
(77.04)
3,068.62
0.00
3,068.62
404.48
471.45
(66.97)
29,393.21
25,926.67
3,466.54
24,078.99
12,878.97
11,200.02
24,078.99
12,878.97
11,200.02
0.00
3,036.38
(3,036.38)
0.00
429.29
(429.29)
0.00
3,465.67
(3,465.67)
VISIT
NLWPORT
BEACIA
CALIFORNIA
Professional Fees
64205 - Payroll Processing Service
64201- Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66123 - Promotional Client Gifts
Total Advertising Expenses
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
Total Community Relations
Digital Marketing
67502 - Website Maintenance
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2021
Year To Date Year To Date
07/31/2021 07/31/2020
$ Variance Year over
227.64
163.37
64.27
0.00
(7,500.00)
7,500.00
0.00
(2,000.00)
2,000.00
227.64
(9,336.63)
9,564.27
700.32
0.00
700.32
123.95
0.00
123.95
26.39
0.00
26.39
165.32
0.00
165.32
1,015.98
0.00
1,015.98
54,715.82
32,934.68
21,781.14
(62.98)
0.00
(62.98)
(62.98)
0.00
(62.98)
2,000.00
0.00
2,000.00
2,000.00
0.00
2,000.00
3,590.00
0.00
3,590.00
0.00
2,212.03
(2,212.03)
0.00
5,000.00
(5,000.00)
3,590.00
7,212.03
(3,622.03)
5,590.00
7,212.03
(1,622.03)
1,716.68 0.00
33,810.00 2,687.52
0.00 1,439.25
35,526.68 4,126.77
750.00
45,000.00
0.00
30,965.00
45,750.00
30,965.00
726.02
550.00
48,578.92
0.00
0.00
8,808.36
49,854.94
8,808.36
131,131.62
43,900.13
0.00 803.97
226.03 0.00
99r. nq Rnq 07
1,716.68
31,122.48
(1,439.25)
31.399.91
750.00
14, 035.00
14.785.00
726.02
550.00
39, 770.56
41, 046.58
87,231.49
(803.97)
226.03
(577.94)
256,127.58 138,059.29 118,068.29
7,760.42 (76,727.16) 84,487.58
VISIT
NLVIAPO T
BE ACH 0
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
46004 - Miscellaneous Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64140
- Postage
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64165
- Subscriptions
64170
- Team Meetings
64175
- Governance Meeting Expenses
64180
- Education
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2021
Year To Date Year To Date
06/30/2021 06/30/2020
$ Variance Year over
1,681,911.83
4,257,269.37
(2,575,357.54)
1,681,911.83
4,257,269.37
(2,575,357.54)
1,493.94
10,414.48
(8,920.54)
22,800.00
0.00
22,800.00
24,293.94
10,414.48
13,879.46
1,706,205.77
4,267,683.85
(2,561,478.08)
563,645.26
949,479.58
(385,834.32)
21,953.01
74,342.16
(52,389.15)
12,770.00
13,745.00
(975.00)
44,786.91
81,308.65
(36,521.74)
17,622.60
781.08
16,841.52
660,777.78
1,119,656.47
(458,878.69)
77,049.20
107,290.88
(30,241.68)
329.03
289.09
39.94
7,136.55
7,250.56
(114.01)
1,092.73
1,211.38
(118.65)
14,473.52
15,544.94
(1,071.42)
27,573.79
69,478.96
(41,905.17)
2,695.44
1,518.05
1,177.39
5,674.89
6,750.65
(1,075.76)
136,02SAS
209,334.51
(73,309.36)
2,538.86
6,585.18
(4,046.32)
805.55
3,845.56
(3,040.01)
2,400.00
535.18
1,864.82
1,670.82
2,328.46
(657.64)
18,683.00
21,190.25
(2,507.25)
8,133.91
9,387.18
(1,253.27)
7,266.33
5,457.47
1,808.86
4,170.00
8,285.28
(4,115.28)
1,264.08
0.00
1,264.08
385.00
0.00
385.00
263.02
3,213.32
(2,950.30)
40.00
45.00
(5.00)
32,135.06
41,624.09
(9,489.03)
0.00
170.25
(170.25)
6,072.13
21,934.90
(15,862.77)
0.00
9,559.22
(9,559.22)
5,775.76
12,609.32
(6,833.56)
VISIT
NLVIAPO T
BE ACH 0
CALIFORNIA
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
66212 - Community Sponsorships
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
67104 - Annual Marketing Outlook Event
67107 - Promotional Items
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2021
Year To Date Year To Date
06/30/2021 06/30/2020
$ Variance Year over
35.00
546.84
(511.84)
5,188.54
10,703.65
(5,515.11)
1,471.47
7,773.15
(6,301.68)
556.96
31,500.00
(30,943.04)
98,855.49
197,294.30
(98,438.81)
118,142.99
116,807.29
1,335.70
0.00
3,423.91
(3,423.91)
118,142.99
120,231.20
(2,088.21)
1,337.34
1,168.18
169.16
3,002.54
4,419.54
(1,417.00)
2,488.29
3,594.51
(1,106.22)
6,828.17
9,182.23
(2,354.06)
5,804.05
3,844.81
1,959.24
66.25
25,497.00
(25,430.75)
108,000.00
108,000.00
0.00
13,500.00
10,950.00
2,550.00
2,000.00
1,000.00
1,000.00
129,370.30
149,291.81
(19,921.51)
0.00
5,476.84
(5,476.84)
0.00
5,086.31
(5,086.31)
0.00
369.96
(369.96)
0.00
2,347.03
(2,347.03)
3.80
0.00
3.80
0.00
215.00
(215.00)
3.80
13,495.14
(13,491.34)
353,200.75
489,494.68
(136,293.93)
5,000.00
63,141.00
(58,141.00)
7,854.92
78,957.65
(71,102.73)
3,978.34
23,173.02
(19,194.68)
2,916.20
0.00
2,916.20
10,728.40
102,598.36
(91,869.96)
0.00
1,756.33
(1,756.33)
30,477.86
269,626.36
(239,148.50)
0.00
6,500.00
(6,500.00)
0.00
1,500.00
(1,500.00)
0.00
74,984.71
(74,984.71)
61.00
0.00
61.00
61.00
82,984.71
(82,923.71)
187.59
0.00
187.59
187.59
0.00
187.59
VISIT
NL IBPORT
BEACH (b
CALIFORNIA
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2021
Year To Date
Year To Date
06/30/2021
06/30/2020
$Variance Year over
9,764.00
0.00
9,764.00
12,000.00
0.00
12,000.00
5,512.50
0.00
5,512.50
26,544.40
21,099.36
5,445.04
44,744.00
39,208.33
5,535.67
98,564.90
60,307.69
38,257.21
0.00
1,939.98
(1,939.98)
0.00
1,939.98
(1,939.98)
98,813.49
145,232.38
(46,418.89)
9,194.26
49,950.23
(40,755.97)
18,439.52
149,470.21
(131,030.69)
14,184.41
182,239.15
(168,054.74)
41,818.19
381,659.59
(339,841.40)
9,200.00
275,587.51
(266,387.51)
68,216.92
78,853.74
(10,636.82)
2,500.00
7,802.24
(5,302.24)
79,916.92
362,243.49
(282,326.57)
2,902.44
37,976.08
(35,073.64)
0.00
47,031.07
(47,031.07)
0.00
165.55
(165.55)
20,811.44
98,758.93
(77,947.49)
23,713.88
183,931.63
(160,217.75)
145,448.99
927,834.71
(782,385.72)
4,000.00
82,878.63
(78,878.63)
1,768.99
18,736.72
(16,967.73)
11,475.32
62,792.66
(51,317.34)
17,244.31
164,408.01
(147,163.70)
1,441,988.33
3,325,587.12
(1,883,598.79)
264,217.44
942,096.73
(677,879.29)
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Period:
4/1/2021to 6/30/2021
Created On:
7/21/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
TBIDChecking - Union Bank NA
Account No: 0030025482
4/2/2021
V00150--Blue Shield of California
4/21 Blue Shiel
4,754.51
4/2/2021
V01143--The Irvine Company, LLC
4/21 Ste 130 Le
11,904.16
4/5/2021
V01346--Intacct
7483
6,820.00
4/5/2021
V00403--FICP
7482
118.00
4/5/2021
V00767--Newport Beach Bayview Marriott
7480
2,000.00
4/5/2021
V01313--GreenhausInc.
7481
2,823.60
4/5/2021
V01835--Voda Films
7479
2,500.00
4/14/2021
V00642--Liberty Mutual
Voided - 7486
-1,337.34
4/14/2021
V01853--The Hanover Insurance Group
7484
124.50
4/14/2021
V01474--Renaissance Newport Beach
7488
500.00
4/14/2021
V00302--Cvent,Inc.
7485
5,000.00
4/14/2021
V00767--Newport Beach Bayview Marriott
7487
783.80
4/14/2021
V00642--Liberty Mutual
7486
1,337.34
4/14/2021
V01842--Sterling Administration
3/21FSAFeesTBID
23.00
4/14/2021
V01842--Sterling Administration
PP4/9/21FSATBID
115.38
4/14/2021
V01190--Transamerica Retirement Solutions
PP 4/12/21 401(
3,605.05
4/21/2021
V00791--Noble Studios
7491
2,275.00
4/21/2021
V01564--Standard Insurance PAS Executive
7489
517.13
4/21/2021
V01721--Wells Fargo Vendor Fin Sery
7490
211.50
4/21/2021
V01740--Choice Builder
5/21 Dental/Vis
370.17
4/27/2021
V01842--Sterling Administration
PP4/23/21FSATBI
115.38
4/28/2021
V01038--Skyward Technical Solutions
7493
1,504.80
4/28/2021
V01563--Standard Insurance Company
7492
499.89
4/28/2021
V01190--Transamerica Retirement Solutions
PP 4/26/21 401(
3,732.50
5/3/2021
V01498--Newport Beach Country Club*
7494
1,000.00
5/4/2021
V00642--Liberty Mutual
2021 liab ins
1,337.34
5/4/2021
V00773--Newport Beach Marriott Hotel and Spa
7495
1,200.00
5/5/2021
V01143--The Irvine Company, LLC
5/21 Ste 130 Le
11,904.16
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Period:
4/1/2021to 6/30/2021
Created On:
7/21/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
TBIDChecking - Union Bank NA
Account No: 0030025482
5/5/2021
V00777--Newport Dunes Waterfront Resort Mari
7497
3,500.00
5/5/2021
V01094--Strategic Database Research
7496
3,500.00
5/6/2021
V00150--Blue Shield of California
5/21Blue Shield
4,754.51
5/11/2021
V01842--Sterling Administration
PP5/7/21FSATBID
143.16
5/12/2021
V01190--Transamerica Retirement Solutions
PP5/10/21401(k
3,936.42
5/13/2021
V01842--Sterling Administration
4/21FSAFeesTBID
23.00
5/19/2021
V01721--Wells Fargo Vendor Fin Sery
7498
228.83
5/21/2021
V01740--Choice Builder
6/21 Dental/Vis
476.08
5/25/2021
V01394--Visit Newport Beach Inc. (TBID)
1151
15,000.00
5/25/2021
V00492--HelmsBriscoe Performance Group Inc
7500
20,000.00
5/25/2021
V00267--Conference Direct
7501
25,000.00
5/25/2021
V00920--Prestige Concepts Promotion and Even
7499
284.24
5/26/2021
V01190--Transamerica Retirement Solutions
PP 5/24/21 401(
4,276.74
5/26/2021
V01842--Sterling Administration
PP5/21/21FSATBI
143.16
5/27/2021
V01038--Skyward Technical Solutions
7504
1,504.80
5/27/2021
V01563--Standard Insurance Company
7503
499.89
5/27/2021
V01564--Standard Insurance RAS Executive
7502
517.13
6/2/2021
V01498--Newport Beach Country Club*
7505
662.02
6/3/2021
V00150--Blue Shield of California
6/21 BlueShield
1,631.18
6/4/2021
V01143--The Irvine Company, LLC
6/21 Ste 130 Le
11,904.16
6/8/2021
V00302--Cvent,Inc.
7507
23,117.00
6/8/2021
V01083--Staples
7506
39.41
6/8/2021
V01094--Strategic Database Research
7508
3,500.00
6/8/2021
V01842--Sterling Administration
PP6/4/21FSATBID
193.16
6/8/2021
V00608--KMJ Corbin and Co.
1152
400.00
6/9/2021
V01190--Transamerica Retirement Solutions
PP 6/7/21 401(k
4,276.74
6/11/2021
V01842--Sterling Administration
5/21FSAFeesTBID
30.00
6/15/2021
V00053--American Express
5/29/21Corp Rew
45.00
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Period:
4/1/2021to 6/30/2021
Created On:
7/21/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
TBIDChecking - Union Bank NA
Account No: 0030025482
6/16/2021
6/16/2021
6/16/2021
6/17/2021
6/22/2021
6/23/2021
6/23/2021
6/28/2021
6/28/2021
6/29/2021
6/29/2021
6/30/2021
6/30/2021
6/30/2021
6/30/2021
Total for TBIDChecking
Payee
Document No
Amount
V01721--Wells Fargo Vendor Fin Sery
7509
320.74
V00920--Prestige Concepts Promotion and Even
7510
270.12
V01394--Visit Newport Beach Inc. (TBID)
1153
300,000.00
V00773--Newport Beach Marriott Hotel and Spa
7511
500.00
V01842--Sterling Administration
PP6/18/21FSATBI
193.16
V01740--Choice Builder
7/21 Dental/Vis
476.08
V01190--Transamerica Retirement Solutions
PP 6/22/21 401(
9,361.36
V01038--Skyward Technical Solutions
7513
1,654.80
V01564--Standard Insurance RAS Executive
7512
517.13
V00791--Noble Studios
7514
2,487.50
V01563--Standard Insurance Company
7515
499.89
V01377--Newport Beach and Company
Q4_FY21 Marketi
27,000.00
V01474--Renaissance Newport Beach
7518
3,981.22
V01094--Strategic Database Research
7517
3,500.00
V00918--Premier Displays and Exhibits
7516
1,536.76
547,625.26
VISIT
N EW P RT Visit Newport Beach, Inc. Group Sales (TBID)
BE AC H 19 Statement of Activities YoY for May 2021
CALIFORNIA
Year To Date Year To Date
05/31/2021 05/31/2020
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
1,446,266.65
4,207,074.52
(2,760,807.87)
Total Revenue
1,446,266.65
4,207,074.52
(2,760,807.87)
Other Income
46001 - Interest Income
527.22
1,931.20
(1,403.98)
Total Other Income
527.22
1,931.20
(1,403.98)
Total Operating Revenue
1,446,793.87
4,209,005.72
(2,762,211.85)
Expenses
Salary and Wages
61010 - Salaries and Wages
487,268.97
891,238.01
(403,969.04)
61015 - Bonuses and Commissions
0.00
68,403.16
(68,403.16)
61020 - Auto Allowance
10,925.00
12,655.00
(1,730.00)
61030 - Payroll Tax Expenses
35,881.55
76,327.19
(40,445.64)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
534,359.17
1,048,623.36
(514,264.19)
Benefits
61110 - Medical Insurance
75,172.49
105,374.94
(30,202.45)
61115 - Benefit Administrative Fees
329.03
289.09
39.94
61120 - Dental Insurance
7,064.42
7,089.11
(24.69)
61125 - Vision Insurance
1,077.56
1,188.21
(110.65)
61130 - Life and Disability
14,237.62
15,027.40
(789.78)
61140 - Retirement Plan (401k)
19,376.21
68,797.80
(49,421.59)
61150 - Flexible Spending Plan
2,630.44
1,686.94
943.50
61160 - Employee Engagement Benefit
3,041.66
6,750.65
(3,708.99)
Total Benefits
122,929.43
206,204.14
(83,274.71)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
2,214.58
6,523.48
(4,308.90)
64101 - Kitchen Supplies
747.91
3,817.68
(3,069.77)
64110 - Office Equipment Leases
2,200.00
535.18
1,664.82
64115 - Office Equipment (non-deprec)
1,670.82
2,328.46
(657.64)
64120 - Equipment Repairs & Maintenance
17,028.20
19,145.25
(2,117.05)
64125 - Computer Software (non-deprec)
8,093.41
9,088.00
(994.59)
64130 - Voice and Data - Office
5,945.75
4,984.37
961.38
64135 - Telephone - Mobile
3,320.00
7,805.28
(4,485.28)
64136 - Cable Expenses
1,131.43
0.00
1,131.43
64140 - Postage
385.00
0.00
385.00
64145 - Shipping Charges
247.57
3,194.06
(2,946.49)
64150 - Bank Fees
15.00
30.00
(15.00)
64160 - Membership Dues
32,063.77
41,226.68
(9,162.91)
64165 - Subscriptions
0.00
170.25
(170.25)
64170 - Team Meetings
6,063.13
21,934.90
(15,871.77)
64175 - Governance Meeting Expenses
0.00
9,559.22
(9,559.22)
64180 - Education
4,574.20
13,959.32
(9,385.12)
64190 - Business Licensing and Fees
35.00
291.70
(256.70)
VISIT
N EW PORT
Visit Newport Beach, Inc. Group Sales
(TBID)
Statement of Activities YoY for May 2021
BEACH
CALIFORNIA
Year To Date
Year To Date
O5/31/2021
05/31/2020
$ Variance Year over
64300 - Depreciation Expense
4,784.06
10,232.20
(5,448.14)
64600 - Business Meals/Entertainment
1,336.47
7,773.15
(6,436.68)
64400 - Bad Debt Expense
1,056.96
0.00
1,056.96
Total Operating Expenses
92,913.26
162,599.18
(69,685.92)
Office Lease and Expenses
62100 - Office Lease
120,089.41
91,421.73
28,667.68
62110 - Office Repairs and Maintenance
0.00
3,423.91
(3,423.91)
Total Office Lease and Expenses
120,089.41
94,845.64
25,243.77
Insurance
63100 - General Liability Insurance
1,337.34
1,168.18
169.16
63200 - Workers Compensation Insurance
3,002.54
4,419.54
(1,417.00)
63300 - Board of Directors Insurance
2,488.29
3,594.51
(1,106.22)
Total Insurance
6,828.17
9,182.23
(2,354.06)
Professional Fees
64205 - Payroll Processing Service
4,446.51
3,538.26
908.25
64206 - Independent Contractors
66.25
25,497.00
(25,430.75)
67004 - Marketing NBCo Fees
81,000.00
81,000.00
0.00
64201 - Audit Fees
13,500.00
450.00
13,050.00
64202 - Tax Preparation Fees
2,000.00
(1,000.00)
3,000.00
Total Professional Fees
101,012.76
109,485.26
(8,472.50)
Travel Expenses
65100 - Airfare
0.00
5,476.84
(5,476.84)
65200 - Accommodations
0.00
5,086.31
(5,086.31)
65300 - Meals
0.00
369.96
(369.96)
65400 - Transportation Costs
0.00
2,347.03
(2,347.03)
65405 - Mileage ($0.58/mile 2021)
3.80
0.00
3.80
65500 - Other Travel Costs
0.00
215.00
(215.00)
Total Travel Expenses
3.80
13,495.14
(13,491.34)
Total General and Administrative
320,847.40
389,607.45
(68,760.05)
Advertising Expenses
66101 - Advertising - Purchased
5,000.00
63,230.00
(58,230.00)
66121 - Promotional Gift Cards
5,250.00
78,957.65
(73,707.65)
66123 - Promotional Client Gifts
3,684.22
23,173.02
(19,488.80)
66202 - Ad Production
2,916.20
0.00
2,916.20
66203 - Creative Design/Development
10,728.40
82,598.36
(71,869.96)
66212 - Community Sponsorships
0.00
1,756.33
(1,756.33)
Total Advertising Expenses
27,578.82
249,715.36
(222,136.54)
Marketing Expenses
Community Relations
67103 - Community Partner Events
0.00
6,500.00
(6,500.00)
67101 - Research
0.00
1,500.00
(1,500.00)
67104 - Annual Marketing Outlook Event
0.00
74,984.71
(74,984.71)
67107 - Promotional Items
61.00
0.00
61.00
Total Community Relations
61.00
82,984.71
(82,923.71)
Marketing Collateral
67311 - Collateral Production Expenses
187.59
0.00
187.59
Total Marketing Collateral
187.59
0.00
187.59
Digital Marketing
VISIT
N LVIA PORT
BEACH ()
CALIFORNIA
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2021
Year To Date Year To Date
O5/31/2021 05/31/2020
$ Variance Year over
9,764.00
0.00
9,764.00
12,000.00
0.00
12,000.00
5,512.50
0.00
5,512.50
24,332.33
18,887.33
5,445.00
44,744.00
39,208.33
5,535.67
96,352.83
58,095.66
38,257.17
0.00
1,939.98
(1,939.98)
0.00
1,939.98
(1,939.98)
96,601.42
143,020.35
(46,418.93)
4,633.47
49,950.23
(45,316.76)
16,039.52
149,870.21
(133,830.69)
10,406.23
182,925.06
(172,518.83)
31,079.22
382,745.50
(351,666.28)
8,700.00
288,837.51
68,216.92
81,353.74
2,500.00
7,802.24
79,416.92
377,993.49
2,169.16
37,976.08
0.00
47,031.07
0.00
165.55
17,311.44
98,758.93
19,480.60
183,931.63
129,976.74
944,670.62
(18,800.00)
1,064.62
7,494.10
(10,241.28)
1,222,051.70
152,628.63
15,849.57
62,792.66
231,270.86
3,213,112.14
Net Income 224,742.17 995,893.58
(280,137.51)
(13,136.82)
(5,302.24)
(298,576.57)
(35,806.92)
(47,031.07)
(165.55)
(81,447.49)
(164,451.03)
(814,693.88)
(171,428.63)
(14,784.95)
(55,298.56)
(241,512.14)
(1,991,060.44)
(771,151.41)
VISIT
NLWP ]RT
BEACIA
CALIFORNIA
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001- Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
61040 - Accrued PTO Expense
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2021
Year To Date Year To Date
04/30/2021 04/30/2020
$ Variance Year over
1,279,409.91
4,080,062.66
(2,800,652.75)
1,279,409.91
4,080,062.66
(2,800,652.75)
476.78
1,911.25
(1,434.47)
476.78
1,911.2S
(1,434.47)
1,279,886.69
4,081,973.91
(2,802,087.22)
433,787.52
859,311.66
(425,524.14)
0.00
68,403.16
(68,403.16)
9,805.00
12,655.00
(2,850.00)
31,202.24
73,853.03
(42,650.79)
283.65
0.00
283.65
47S,078.41
1,014,222.8E
(539,144.44)
70,568.24
101,753.59
(31,185.35)
304.03
269.09
34.94
6,525.90
6,570.42
(44.52)
980.38
1,127.34
(146.96)
12,984.70
14,407.06
(1,422.36)
15,083.73
68,797.80
(53,714.07)
2,607.44
1,686.94
920.50
2,853.65
6,750.65
(3,897.00)
111,908.07
201,362.89
(89,454.82)
2,060.25
6,362.72
(4,302.47)
603.52
3,741.51
(3,137.99)
2,000.00
535.18
1,464.82
1,460.71
2,328.46
(867.75)
15,523.40
17,550.25
(2,026.85)
7,670.53
9,063.00
(1,392.47)
5,845.75
4,638.37
1,207.38
2,870.00
7,505.28
(4,635.28)
1,162.75
0.00
1,162.75
385.00
0.00
385.00
226.97
3,049.80
(2,822.83)
0.00
30.00
(30.00)
32,063.77
40,939.18
(8,875.41)
0.00
170.25
(170.25)
5,955.46
21,934.90
(15,979.44)
0.00
9,559.22
(9,559.22)
VISIT
NLWPORT
BEACH 19
CALIFORNIA
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2021)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101- Research
67104 - Annual Marketing Outlook Event
67107 - Promotional Items
Total Community Relations
Marketing Collateral
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2021
Year To Date Year To Date
04/30/2021 04/30/2020
$ Variance Year over
574.20
13,959.32
(13,385.12)
35.00
291.70
(256.70)
4,379.58
91760.75
(5,381.17)
949.27
71773.15
(6,823.88)
1,056.96
0.00
1,056.96
84,823.12
159,193.04
(74,369.92)
108,185.25
90,878.18
17,307.07
0.00
3,423.91
(3,423.91)
108,185.25
94,302.09
13,883.16
1,337.34
1,168.18
169.16
3,002.54
4,419.54
(1,417.00)
2,488.29
3,594.51
(1,106.22)
6,828.17
9,182.23
(2,354.06)
4,239.63
3,356.74
882.89
66.25
25,497.00
(25,430.75)
81,000.00
81,000.00
0.00
0.00
450.00
(450.00)
1,000.00
(1,000.00)
2,000.00
86,305.88
109,303.74
(22,997.86)
0.00
5,476.84
(5,476.84)
0.00
5,086.31
(5,086.31)
0.00
369.96
(369.96)
0.00
2,347.03
(2,347.03)
3.80
0.00
3.80
0.00
215.00
(215.00)
3.80
13,495.14
(13,491.34)
286,146.22
385,476.24
(99,330.02)
0.00
65,255.00
(65,255.00)
5,250.00
78,957.65
(73,707.65)
3,194.02
23,173.02
(19,979.00)
2,916.20
0.00
2,916.20
10,728.40
82,598.36
(71,869.96)
22,088.62
249,984.03
(227,895.41)
0.00
6,500.00
(6,500.00)
0.00
1,500.00
(1,500.00)
0.00
74,984.71
(74,984.71)
61.00
0.00
61.00
61.00
82,984.71
(82,923.71)
VISIT
NLWPORT
B E C IA 19
CALIFORNIA
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2021
Year To Date Year To Date
04/30/2021 04/30/2020
$ Variance Year over
187.59
0.00
187.59
187.59
0.00
187.59
9,764.00
0.00
9,764.00
12,000.00
0.00
12,000.00
5,512.50
0.00
5,512.50
22,120.30
16,675.30
5,445.00
44,744.00
39,208.33
5,535.67
94,140.80
55,883.63
38,257.17
0.00
1,939.98
(1,939.98)
0.00
1,939.98
(1,939.98)
94,389.39
140,808.32
(46,418.93)
4,128.43
49,950.23
(45,821.80)
10,029.52
149,870.21
(139,840.69)
5,767.17
193,594.54
(187,827.37)
19,925.12
393,414.98
(373,489.86)
7,500.00
289,337.51
68,216.92
81,353.74
2,500.00
10,802.24
78,216.92
381,493.49
1,669.16
38,081.08
0.00
47,031.07
0.00
165.55
12,408.36
98,758.93
14,077.52
184,036.63
112,219.56
958,945.10
(13,800.00)
1,064.62
7,494.10
(5,241.28)
1,096,588.99
152,628.63
15,849.57
62,792.66
231,270.86
3,182,070.29
Net Income 183,297.70 899,903.62
(281, 837.51)
(13,136.82)
(8,302.24)
(303,276.57)
(36, 411.92)
(47, 031.07)
(165.55)
(86,350.57)
(169, 959.11)
(846, 725.54)
(166, 428.63)
(14, 784.95)
(55,298.56)
(236,512.14)
(2,085,481.30)
(716,605.92)
Company Name:
Newport Beach And Company
Report Name:
Check Register
Period:
1/1/2021to 3/31/2021
Created On:
4/21/2021
Bank
Date
Payee
Document No
Amount
TBIDChecking - Union Bank NA
Account No: 0030025482
1/4/2021
V01038--Skyward Technical Solutions
7446
1,882.65
1/4/2021
V00302--Cvent, Inc.
7444
5,000.00
1/4/2021
V00773--Newport Beach Marriott Hotel and Spa
7445
1,000.00
1/4/2021
V00773--Newport Beach Marriott Hotel and Spa
7442
1,000.00
1/4/2021
V00918--Premier Displays and Exhibits
7443
1,044.48
1/4/2021
V01117--TASC
PPE 12/26/20 TA
140.76
1/5/2021
V01143--The Irvine Company, LLC
1/21 Ste 130 Le
13,280.81
1/5/2021
V01563--Standard Insurance Company
7447
446.17
1/6/2021
V01190--Transamerica Retirement Solutions
PP 1/4/21 401(k
808.52
1/11/2021
V01234--Verizon Wireless
12/20IpadDataNB
266.82
1/13/2021
V00053--American Express
12/20 AMEX TBID
170.68
1/20/2021
V01842--Sterling Administration
PP1/15/21FSANBC
623.07
1/20/2021
V01842--Sterling Administration
PP1/15/21FSATBI
115.38
1/20/2021
V01190--Transamerica Retirement Solutions
PP 1/19/21 401(
2,856.59
1/21/2021
V00243--City of Newport Beach {Revenue Divisi
7449
42.50
1/21/2021
V00791--Noble Studios
7451
9,089.00
1/21/2021
V01564--Standard Insurance RAS Executive
7450
517.13
1/21/2021
V01721--Wells Fargo Vendor Fin Sery
7448
205.35
1/21/2021
V01740--Choice Builder
2/21 Dental/Vis
581.99
2/2/2021
V01842--Sterling Administration
1/29/21 FSA NBC
623.07
2/2/2021
V01842--Sterling Administration
1/29/21FSATBID
115.38
2/2/2021
V01038--Skyward Technical Solutions
7453
1,493.30
2/2/2021
V01185--Tourism Economics
7452
750.00
2/2/2021
V01713--Northeast CVB Reps
7454
400.00
2/3/2021
V01190--Transamerica Retirement Solutions
PP 2/1/21 401(k
2,856.59
2/3/2021
V01143--The Irvine Company, LLC
2/21 Ste 130 Le
11,904.16
Company Name:
Newport Beach And Company
Report Name:
Check Register
Period:
1/1/2021to 3/31/2021
Created On:
4/21/2021
Bank
Date
Payee
Document No
Amount
TBIDChecking - Union Bank NA
Account No: 0030025482
2/4/2021
V00150--Blue Shield of California
2/21 Blue Shiel
4,594.67
2/8/2021
V01225--US Travel Association
7458
8,812.50
2/8/2021
V00203--CaISAE
7455
2,500.00
2/8/2021
V01843--DMO PROZ
7456
3,750.00
2/8/2021
V01813--Vantaggio HR, ltd.
7457
66.25
2/9/2021
V00102--Balboa Bay Resort
7460
310.50
2/9/2021
V00102--Balboa Bay Resort
7461
2,500.00
2/9/2021
V00102--Balboa Bay Resort
7459
859.00
2/10/2021
V01234--Verizon Wireless
1/21IpadSrvcNBC
267.06
2/10/2021
V00053--American Express
1/21 AMEX- TBID
543.34
2/11/2021
V01842--Sterling Administration
1/21FSAFeeNBC
52.00
2/11/2021
V01842--Sterling Administration
1/21FSAFeeTBID
23.00
2/18/2021
V01721--Wells Fargo Vendor Fin Sery
7462
204.70
2/18/2021
V01842--Sterling Administration
PP2/12/21FSANBC
623.07
2/18/2021
V01842--Sterling Administration
PP2/12/21FSATBI
115.38
2/23/2021
V01740--Choice Builder
3/21 Dental/Vis
581.99
3/2/2021
V01842--Sterling Administration
PP2/26/21FSANBC
623.07
3/2/2021
V01842--Sterling Administration
PP2/26/21FSATBI
115.38
3/3/2021
V01190--Transamerica Retirement Solutions
PP 3/1/21 401(k
3,605.05
3/3/2021
V00150--Blue Shield of California
3/21 Blue Shiel
4,594.67
3/4/2021
V01038--Skyward Technical Solutions
7464
1,493.30
3/4/2021
V01845--Summit Riser Systems
7463
273.32
3/4/2021
V01143--The Irvine Company, LLC
3/21 Ste 130 Le
11,904.16
3/10/2021
V01234--Verizon Wireless
2/21NBCData Chr
267.06
3/11/2021
V01842--Sterling Administration
2/21 FSAFeesNBC
52.00
3/11/2021
V01842--Sterling Administration
2/21 FSAFeeTBID
23.00
Company Name:
Newport Beach And Company
Report Name:
Check Register
Period:
1/1/2021to 3/31/2021
Created On:
4/21/2021
Bank
Date
Payee
Document No
Amount
TBIDChecking - Union Bank NA
Account No: 0030025482
3/11/2021
V00053--American Express
2/21 AMEX-TBID
2,595.48
3/11/2021
V01563--Standard Insurance Company
7465
892.34
3/11/2021
V01564--Standard Insurance PAS Executive
7466
517.13
3/15/2021
V01474--Renaissance Newport Beach
1150
750.00
3/17/2021
V00053--American Express
2/28/21TBIDRewa
45.00
3/17/2021
V01190--Transamerica Retirement Solutions
PP 3/15/21 401(
3,605.05
3/17/2021
V01842--Sterling Administration
PP3/12/21FSATBI
115.38
3/17/2021
V01842--Sterling Administration
PP3/12/21FSANBC
565.38
3/23/2021
V01740--Choice Builder
4/21 Dental/Vis
581.99
3/24/2021
V00791--Noble Studios
7467
1,400.00
3/24/2021
V01585--Destinations International
7470
4,185.00
3/24/2021
V01564--Standard Insurance PAS Executive
7469
517.13
3/24/2021
V01721--Wells Fargo Vendor Fin Sery
7471
213.26
3/24/2021
V00526--Hyatt Regency Newport Beach
7468
4,000.00
3/24/2021
V01117--TASC
7472
1,761.18
3/29/2021
V01038--Skyward Technical Solutions
7473
1,643.30
3/29/2021
V01649--California Travel Association
7475
3,900.00
3/29/2021
V00918--Premier Displays and Exhibits
7474
1,044.48
3/30/2021
V00773--Newport Beach Marriott Hotel and Spa
7478
500.00
3/30/2021
V01620--Lido House, LLC
7476
500.00
3/30/2021
V01563--Standard Insurance Company
7477
547.72
3/31/2021
V01842--Sterling Administration
PP3/26/21FSANBC
565.38
3/31/2021
V01842--Sterling Administration
PP 3/26/21 FSA
115.38
3/31/2021
V01190--Transamerica Retirement Solutions
PP 3/29/21 401(
3,605.05
3/31/2021
V01377--Newport Beach and Company
Q3_FY21 Marketi
27,000.00
Total for TBIDChecking
167,134.50
VISIT
NLWPO T
BE ACH 49
CALIFORNIA,
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
61040 - Accrued PTO Expense
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2021
03/31/2021
03/31/2020
1,176,316.35
3,675,349.38
1,176,316.35
3,675,349.38
419.33
419.33
$ Variance Year over
(2,499,033.03)
(2,499,033.03)
1,881.23 (1,461.90)
1,881.23 (1,461.90)
1,176,735.68 3,677,230.61 (2,500,494.93)
378,704.11
774,073.83
(395,369.72)
0.00
64,453.16
(64,453.16)
8,760.00
12,655.00
(3,895.00)
26,718.35
63,873.67
(37,155.32)
283.65
0.00
283.65
414,466.11
915,055.66
(500,589.55)
61,744.30
86,286.54
(24,542.24)
279.03
244.09
34.94
6,100.56
5,733.76
366.80
875.93
1,012.39
(136.46)
11,731.78
12,910.64
(1,178.86)
10,570.93
66,666.43
(56,095.50)
2,584.44
1,546.20
1,038.24
2,636.06
6,750.65
(4,114.59)
96,523.03
181,150.70
(84,627.67)
835.11
6,362.72
(5,527.61)
530.75
3,741.51
(3,210.76)
1,800.00
535.18
1,264.82
1,460.71
2,328.46
(867.75)
14,018.60
16,105.25
(2,086.65)
6,485.03
7,691.50
(1,206.47)
5,267.02
4,292.28
974.74
2,520.00
6,930.28
(4,410.28)
1,074.51
0.00
1,074.51
385.00
0.00
385.00
206.37
2,954.58
(2,748.21)
0.00
30.00
(30.00)
32,063.77
40,914.19
(8,850.42)
0.00
170.25
(170.25)
5,796.89
21,934.90
(16,138.01)
0.00
9,559.22
(9,559.22)
574.20
13,959.32
(13,385.12)
35.00
291.70
(256.70)
VISIT
NLWPO T
BE ACH 49
CALIFORNIA,
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101- Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101- Research
67104 - Annual Marketing Outlook Event
67107 - Promotional Items
Total Community Relations
Marketing Collateral
67311- Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2021
03/31/2021 03/31/2020
3,975.10
9,289.30
686.22
7,773.15
1,056.96
0.00
78,771.24
154,863.79
96,281.09
90,334.63
0.00
3,423.91
96,281.09
93,758.54
1,337.34
1,182.66
3,002.54
4,419.54
2,488.29
3,594.51
6,828.17
9,196.71
3,051.19
2,925.12
66.25
24,237.00
81,000.00
81,000.00
0.00
450.00
1,000.00
(1,000.00)
85,117.44 107,612.12
0.00
5,476.84
0.00
5,086.31
0.00
369.96
0.00
2,347.03
3.80
0.00
0.00
215.00
3.80 13,495.14
267,001.74 378,926.30
0.00
5,250.00
2,276.00
2,823.60
10,728.40
21,078.00
0.00
0.00
0.00
61.00
61.00
187.59
187.59
7,489.00
65,255.00
78,957.65
23,173.02
0.00
80,348.36
247,734.03
6,500.00
1,500.00
74,984.71
n_nn
$ Variance Year over
(5,314.20)
(7,086.93)
1,056.96
(76,092.55)
5,946.46
(3,423.91)
2,522.55
154.68
(1,417.00)
(1,106.22)
(2,368.54)
126.07
(24,170.75)
0.00
(450.00)
2,000.00
(22,494.68)
(5,476.84)
(5,086.31)
(369.96)
(2,347.03)
3.80
(215.00)
(13,491.34)
(111, 924.56)
(65,255.00)
(73,707.65)
(20,897.02)
2,823.60
(69, 619.96)
(226, 656.03)
(6,500.00)
(1,500.00)
(74, 984.71)
61.00
82,984.71 (82,923.71)
0.00 187.59
0.00 187.59
0.00 7,489.00
VISIT
N E W T O R T Visit Newport Beach, Inc. Group Sales (TBID)
BEACIA 19 Statement of Activities YoY for March 2021
CALIFOW41A
03/31/2021
03/31/2020
$ Variance Year over
67503 - Online Search Advertising
12,000.00
0.00
12,000.00
67504 - Digital Advertising
5,512.50
0.00
5,512.50
67508 - Website Redesign Expenses
19,908.27
14,463.27
5,445.00
66211 - CRM Maintenance
39,744.00
39,208.33
535.67
Total Digital Marketing
84,653.77
53,671.60
30,982.17
Communications/Public Relations
67605 - Media Special Programs
0.00
1,939.98
(1,939.98)
Total Communications/Public Relations
0.00
1,939.98
(1,939.98)
Total Marketing Expenses
84,902.36
138,596.29
(53,693.93)
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
4,128.43
49,950.23
(45,821.80)
66222 - Trade Show Registration
6,331.52
154,870.21
(148,538.69)
66223 - Trade Show Booth Expenses
5,767.17
194,292.73
(188,525.56)
Total Trade Show Expense
16,227.12
399,113.17
(382,886.05)
Sponsorships
66231 - Sales Group Enhancement Credit
7,000.00
292,837.51
(285,837.51)
66233 - Industry Partnerships
66,557.57
81,353.74
(14,796.17)
66234 - Industry Sponsorships
2,500.00
10,802.24
(8,302.24)
Total Sponsorships
76,057.57
384,993.49
(308,935.92)
Sales Initiatives
66207 - Site Inspections
598.41
37,491.08
(36,892.67)
66208 - Client Events
0.00
47,031.07
(47,031.07)
66210 - Conference Services
0.00
165.55
(165.55)
66209 - Database/Prospecting
8,908.36
98,758.93
(89,850.57)
Total Sales Initiatives
9,506.77
183,446.63
(173,939.86)
Total Direct Sales Initiatives
101,791.46
967,553.29
(865,761.83)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
(13,800.00)
168,418.61
(182,218.61)
66247 - Partner Engagement Expenses
1,064.62
15,849.57
(14,784.95)
66248 - Group Marketing Initiatives
3,210.30
62,792.66
(59,582.36)
Total Customized Destination Support
(9,525.08)
247,060.84
(256,585.92)
Total Expenses
976,237.62
3,076,077.11
(2,099,839.49)
Net Income
200,498.06
601,153.50
(400,655.44)
VISIT
N E W PO T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for February 2021
CALIFORNIA
Year To Date Year To Date
02/28/2021 02/29/2020
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
1,110,511.00
3,319,933.87
(2,209,422.87)
Total Revenue
1,110,511.00
3,319,933.87
(2,209,422.87)
Other Income
46001- Interest Income
355.86
1,853.47
(1,497.61)
Total Other Income
355.86
1,853.47
(1,497.61)
Total Operating Revenue
1,110,866.86
3,321,787.34
(2,210,920.48)
Expenses
Salary and Wages
61010 - Salaries and Wages
334,199.32
686,496.52
(352,297.20)
61015 - Bonuses and Commissions
0.00
58,805.44
(58,805.44)
61020 - Auto Allowance
7,740.00
11,185.00
(3,445.00)
61030 - Payroll Tax Expenses
27,073.92
56,696.39
(29,622.47)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
369,296.89
813,183.35
(443,886.46)
Benefits
61110 - Medical Insurance
55,073.85
76,976.42
(21,902.57)
61115 - Benefit Administrative Fees
254.03
175.91
78.12
61120 - Dental Insurance
5,448.86
5,149.49
299.37
61125 - Vision Insurance
786.02
910.10
(124.08)
61130 - Life and Disability
10,431.03
10,853.92
(422.89)
61140 - Retirement Plan (401k)
5,741.46
59,178.55
(53,437.09)
61150 - Flexible Spending Plan
2,517.05
1,320.69
1,196.36
61160 - Employee Engagement Benefit
2,509.41
6,672.75
(4,163.34)
Total Benefits
82,761.71
161,237.83
(78,476.12)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
718.74
5,934.61
(5,215.87)
64101- Kitchen Supplies
530.75
3,406.82
(2,876.07)
64110 - Office Equipment Leases
1,600.00
535.18
1,064.82
64115 - Office Equipment (non-deprec)
1,460.71
2,328.46
(867.75)
64120 - Equipment Repairs & Maintenance
12,375.30
14,660.25
(2,284.95)
64125 - Computer Software (non-deprec)
6,449.03
7,447.00
(997.97)
64130 - Voice and Data - Office
4,580.23
3,923.68
656.55
64135 - Telephone - Mobile
2,220.00
6,105.28
(3,885.28)
64136 - Cable Expenses
986.80
0.00
986.80
64140 - Postage
385.00
0.00
385.00
64145 - Shipping Charges
185.77
2,358.52
(2,172.75)
64150 - Bank Fees
0.00
30.00
(30.00)
64160 - Membership Dues
26,533.77
40,725.06
(14,191.29)
64165 - Subscriptions
0.00
170.25
(170.25)
64170 - Team Meetings
5,796.89
21,934.90
(16,138.01)
64175 - Governance Meeting Expenses
0.00
9,559.22
(9,559.22)
VISIT
N E W PO T Visit Newport Beach, Inc. Group Sales (TBID)
BEACH 0 Statement of Activities YoY for February 2021
CALIFORNIA
Year To Date
Year To Date
02/28/2021
02/29/2020
$ Variance Year over
64180 - Education
574.20
19,234.32
(18,660.12)
64190 - Business Licensing and Fees
35.00
291.70
(256.70)
64300 - Depreciation Expense
3,570.62
81817.85
(5,247.23)
64600 - Business Meals/Entertainment
686.22
6,828.63
(6,142.41)
64400 - Bad Debt Expense
1,056.96
0.00
1,056.96
Total Operating Expenses
69,745.99
154,291.73
(84,545.74)
Office Lease and Expenses
62100 - Office Lease
84,376.93
80,234.78
4,142.15
62110 - Office Repairs and Maintenance
0.00
3,423.91
(3,423.91)
Total Office Lease and Expenses
84,376.93
83,658.69
718.24
Insurance
63200 - Workers Compensation Insurance
3,002.54
4,419.54
(1,417.00)
63300 - Board of Directors Insurance
2,488.29
3,594.51
(1,106.22)
Total Insurance
5,490.83
8,014.05
(2,523.22)
Professional Fees
64205 - Payroll Processing Service
1,754.87
2,634.16
(879.29)
64206 - Independent Contractors
66.25
20,350.00
(20,283.75)
67004 - Marketing NBCo Fees
54,000.00
54,000.00
0.00
64201- Audit Fees
0.00
450.00
(450.00)
64202 - Tax Preparation Fees
1,000.00
(1,000.00)
2,000.00
Total Professional Fees
56,821.12
76,434.16
(19,613.04)
Travel Expenses
65100 - Airfare
0.00
4,850.04
(4,850.04)
65200 - Accommodations
0.00
5,086.31
(5,086.31)
65300 - Meals
0.00
369.96
(369.96)
65400 - Transportation Costs
0.00
1,871.63
(1,871.63)
65405 - Mileage ($0.58/mile 2019)
3.80
0.00
3.80
65500 - Other Travel Costs
0.00
215.00
(215.00)
Total Travel Expenses
3.80
12,392.94
(12,389.14)
Total General and Administrative
216,438.67
334,791.57
(118,352.90)
Advertising Expenses
66101- Advertising - Purchased
0.00
65,255.00
(65,255.00)
66121- Promotional Gift Cards
5,250.00
76,657.65
(71,407.65)
66123 - Promotional Client Gifts
2,203.88
22,291.11
(20,087.23)
66203 - Creative Design/Development
10,728.40
52,848.36
(42,119.96)
Total Advertising Expenses
18,182.28
217,052.12
(198,869.84)
Marketing Expenses
Community Relations
67103 - Community Partner Events
0.00
6,500.00
(6,500.00)
67101- Research
0.00
1,500.00
(1,500.00)
67104 - Annual Marketing Outlook Event
0.00
74,984.71
(74,984.71)
Total Community Relations
0.00
82,984.71
(82, 984.71)
Marketing Collateral
67311- Collateral Production Expenses
187.59
0.00
187.59
Total Marketing Collateral
187.59
0.00
187.59
Digital Marketing
VISIT
'� W P O � y1� T Visit Newport Beach, Inc. Group Sales (TBID)
i1� Statement of Activities YoY for February 2021
ACIA 0
CALIFORNIA
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Year To Date Year To Date
02/28/2021 02/29/2020
$ Variance Year over
6,089.00
0.00
6,089.00
12,000.00
0.00
12,000.00
5,512.50
0.00
5,512.50
17,696.24
12,251.24
5,445.00
39,744.00
39,208.33
535.67
81,041.74
51,459.57
29,582.17
0.00
1,939.98
(1,939.98)
0.00
1,939.98
(1,939.98)
81,229.33
136,384.26
(55,154.93)
4,128.43
43,170.78
(39,042.35)
6,331.52
178,370.21
(172,038.69)
4,722.69
178,426.66
(173,703.97)
15,182.64
399,967.65
(384,785.01)
5,750.00
280,591.31
(274,841.31)
62,439.57
81,353.74
(18,914.17)
2,500.00
13,744.49
(11,244.49)
70,689.57
375,689.54
(304,999.97)
598.41
34,976.72
(34,378.31)
0.00
45,565.23
(45,565.23)
0.00
165.55
(165.55)
8,908.36
95,758.93
(86,850.57)
9,506.77
176,466.43
(166,959.66)
95,378.98
952,123.62
(856,744.64)
(15,800.00)
160,418.61
(176,218.61)
1,064.62
10,755.82
(9,691.20)
0.00
54,282.59
(54,282.59)
(14,735.38)
225,457.02
(240,192.40)
848,552.48
2,840,229.77
(1,991,677.29)
262,314.38
481,557.57
(219,243.19)
VISIT
ie��O-e Qrt
EACHiNc.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2021
Year To Date Year To Date
01/31/2021 01/31/2020
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
1,033,557.27
2,987,652.16
(1,954,094.89)
Total Revenue
1,033,557.27
2,987,652.16
(1,954,094.89)
Other Income
46001- Interest Income
300.51
1,829.27
(1,528.76)
Total Other Income
300.51
1,829.27
(1,528.76)
Total Operating Revenue
1,033,857.78
2,989,481.43
(1,955,623.65)
Expenses
Salary and Wages
61010 - Salaries and Wages
289,694.52
606,504.29
(316,809.77)
61015 - Bonuses and Commissions
0.00
58,805.44
(58,805.44)
61020 - Auto Allowance
6,720.00
9,715.00
(2,995.00)
61030 - Payroll Tax Expenses
23,373.12
50,476.96
(27,103.84)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
320,071.29
725,501.69
(405,430.40)
Benefits
61110 - Medical Insurance
48,563.24
68,241.64
(19,678.40)
61115 - Benefit Administrative Fees
229.03
175.91
53.12
61120 - Dental Insurance
4,797.16
4,565.22
231.94
61125 - Vision Insurance
696.11
807.81
(111.70)
61130 - Life and Disability
8,785.66
10,172.86
(1,387.20)
61140 - Retirement Plan (401k)
2,581.04
52,783.63
(50,202.59)
61150 - Flexible Spending Plan
732.87
1,320.69
(587.82)
61160 - Employee Engagement Benefit
2,382.76
6,094.85
(3,712.09)
Total Benefits
68,767.87
144,162.61
(75,394.74)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
613.21
4,836.47
(4,223.26)
64101- Kitchen Supplies
494.23
2,955.29
(2,461.06)
64110 - Office Equipment Leases
1,400.00
535.18
864.82
64115 - Office Equipment (non-deprec)
1,460.71
2,032.62
(571.91)
64120 - Equipment Repairs & Maintenance
10,882.00
13,215.25
(2,333.25)
64125 - Computer Software (non-deprec)
6,422.03
7,297.00
(874.97)
64130 - Voice and Data - Office
4,172.49
3,440.54
731.95
64135 - Telephone - Mobile
1,920.00
5,305.28
(3,385.28)
64136 - Cable Expenses
621.48
0.00
621.48
64140 - Postage
385.00
0.00
385.00
64145 - Shipping Charges
165.17
1,773.36
(1,608.19)
64150 - Bank Fees
0.00
15.00
(15.00)
64160 - Membership Dues
17,721.27
39,979.63
(22,258.36)
64165 - Subscriptions
0.00
80.25
(80.25)
64170 - Team Meetings
2,046.89
20,414.81
(18,367.92)
64175 - Governance Meeting Expenses
0.00
9,255.97
(9,255.97)
64180 - Education
499.20
19,234.32
(18,735.12)
VISIT
ie��O-e Qrt
EACHiNc.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2021
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101- Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101- Research
67104 - Annual Marketing Outlook Event
Total Community Relations
Marketing Collateral
67311- Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
Year To Date
Year To Date
01/31/2021
01/31/2020
35.00
291.70
3,166.14
7,914.51
222.57
5,959.19
1,056.96
0.00
53,284.35
144,536.37
72,472.77
n nn
/L,44/L./ /
3,036.38
2,488.29
5,524.67
1,564.15
66.25
54,000.00
0.00
1,000.00
56,630.40
0.00
0.00
0.00
0.00
3.80
0.00
�s:rn
12S /,y1S.yy
0.00
0.00
2,203.88
10,468.98
12,672.86
70,134.93
2,671.37
72,806.30
4,419.54
3,594.51
8,014.05
2,340.90
17,100.00
54,000.00
450.00
(1,000.00)
72,890.90
4,850.04
4,613.87
369.96
1,865.63
0.00
110.00
11,809.50
310,057.12
65,255.00
65,970.20
21,781.99
39,159.22
192,166.41
0.00
6,500.00
0.00
1,500.00
0.00
74,984.71
0.00
82,984.71
187.59
0.00
187.59
0.00
6,089.00
0.00
12,000.00
0.00
$ Variance Year over
(256.70)
(4,748.37)
(5,736.62)
1,056.96
(91,252.02)
2,337.84
(2,671.37)
(333.53)
(1,383.16)
(1,106.22)
(2,489.38)
(776.75)
(17, 033.75)
0.00
(450.00)
2,000.00
(16,260.50)
(4,850.04)
(4,613.87)
(369.96)
(1,865.63)
3.80
(110.00)
(11,805.70)
(122,141.13)
(65,255.00)
(65, 970.20)
(19,578.11)
(28, 690.24)
(179,493.55)
(6,500.00)
(1,500.00)
(74, 984.71)
(82, 984.71)
187.59
187.59
6,089.00
12,000.00
VISIT e1N 4Yt
:� EACHIr~r:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2021
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Year To Date Year To Date
01/31/2021 01/31/2020
3,307.50
15,484.21
38,550.00
75,430.71
n.nn
0.00
10,039.21
39,208.33
49,247.54
1.9R9.9R
U.UU
1,737.-j0
75,618.30
134,172.23
4,128.43
33,370.77
3,786.52
171,380.21
4,722.69
150,998.05
12,637.64
355,749.03
5,750.00
248,846.21
56,584.47
71,353.74
2,500.00
13,494.49
64,834.47
333,694.44
392.67
0.00
0.00
8,908.36
9,301.03
96.773.14
(13,800.00)
918.00
5.5Rn.nn
33,860.83
38,202.67
165.55
92,258.93
164,487.98
953.931.4.5
134,420.61
9,310.37
17.621.77
I/,SUL.UUJ liS1,SSL./S
744,517.45 2,541,344.26
$ Variance Year over
3,307.50
5,445.00
(658.33)
26,183.17
(1,939.98)
(1,939.98)
(58,553.93)
(29,242.34)
(167, 593.69)
(146,275.36)
(343,111.39)
(243, 096.21)
(14, 769.27)
(10, 994.49)
(268,859.97)
(33, 468.16)
(38,202.67)
(165.55)
(83,350.57)
(155,186.95)
(767,158.31)
(148,220.61)
(8,392.37)
(32, 041.77)
(188, 654.75)
(1,796,826.81)
Net Income 289,340.33 448,137.17 (158,796.84)
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Period:
10/1/2020 to 12/31/2020
Created On:
1/12/2021
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Payee
Document No
Amount
TBIDChecking - Union Bank NA
Account No: 0030025482
10/1/2020
V01038--Skyward Technical Solutions
7415
2,116.26
10/1/2020
V01563--Standard Insurance Company
7414
446.17
10/5/2020
V01143--The Irvine Company, LLC
10/20 Ste 130 L
9,610.87
10/6/2020
V00150--Blue Shield of California
10/20 Blue Shie
4,594.67
10/7/2020
V00302--Cvent,Inc.
7417
5,000.00
10/7/2020
V00918--Premier Displays and Exhibits
7416
2,088.96
10/7/2020
V01030--Simpleview, Inc.
7418
23,550.00
10/13/2020
V01117--TASC
PPE10/03/20TAS1
74.07
10/13/2020
V00608--KMJ Corbin and Co.
7420
5,000.00
10/13/2020
V00773--Newport Beach Marriott Hotel and Spa
7419
750.00
10/14/2020
V01190--Transamerica Retirement Solutions
PP 10/09/20 401
776.97
10/14/2020
V01117--TASC
PPE10/03/20TAS2
66.67
10/21/2020
V01740--Choice Builder
11/20 Dental/Vi
576.99
10/26/2020
V01117--TASC
PPE 10/17/20 TA
140.74
10/26/2020
V01797--Spark Branding House, INC
7421
10,000.00
10/28/2020
V01190--Transamerica Retirement Solutions
PP 10/23/20 401
776.97
11/2/2020
V01038--Skyward Technical Solutions
7423
1,445.00
11/2/2020
V01563--Standard Insurance Company
7422
446.17
11/4/2020
V00102--Balboa Bay Resort
7424
1,000.00
11/4/2020
V01721--Wells Fargo Vendor Fin Sery
7425
249.98
11/5/2020
V01143--The Irvine Company, LLC
11/20 Ste 130 L
10,311.44
11/5/2020
V00773--Newport Beach Marriott Hotel and Spa
1148
1,200.00
11/5/2020
V00526--Hyatt Regency Newport Beach
7430
150.00
11/5/2020
V00526--Hyatt Regency Newport Beach
7426
280.86
11/5/2020
V00102--Balboa Bay Resort
7429
1,000.00
11/5/2020
V00773--Newport Beach Marriott Hotel and Spa
7428
4,000.00
11/5/2020
V00526--Hyatt Regency Newport Beach
7427
6,000.00
11/6/2020
V00150--Blue Shield of California
11/20 Blue Shie
3,996.81
11/9/2020
V01117--TASC
PPE 10/31/20 TA
140.74
11/12/2020
V01190--Transamerica Retirement Solutions
PP 11/09/20 401
776.97
11/13/2020
V00423--Franchise Tax Board
1149
10.00
Company Name:
Report Name:
Period:
Created On:
Location:
Bank
TBIDChecking - Union Bank NA
Visit Newport Beach, Inc.
Check Register
10/1/2020 to 12/31/2020
1/12/2021
400--Visit Newport Beach, Inc. Group Sales
Date
Account No: 0030025482
11/16/2020
11/16/2020
11/23/2020
11/23/2020
11/24/2020
11/24/2020
11/24/2020
11/24/2020
11/24/2020
11/25/2020
11/30/2020
12/3/2020
12/3/2020
12/7/2020
12/9/2020
12/9/2020
12/16/2020
12/17/2020
12/17/2020
12/21/2020
12/21/2020
12/21/2020
12/22/2020
12/23/2020
12/23/2020
12/23/2020
12/30/2020
Payee
V00285--Cox Communications
V00285--Cox Communications
V01117--TASC
V01740--Choice Builder
V01563--Standard Insurance Company
V01564--Standard Insurance RAS Executive
V01721--Wells Fargo Vendor Fin Sery
V00791--Noble Studios
V00203--CaISAE
V01190--Transamerica Retirement Solutions
V01842--Sterling Administration
V01143--The Irvine Company, LLC
V00150--Blue Shield of California
V01117--TASC
V01038--Skyward Technical Solutions
V01190--Transamerica Retirement Solutions
V01842--Sterling Administration
V01721--Wells Fargo Vendor Fin Sery
V01833--Future Plan by Ascensus
V01833--Future Plan by Ascensus
V01564--Standard Insurance RAS Executive
V01117--TASC
V01740--Choice Builder
V01377--Newport Beach and Company
V01190--Transamerica Retirement Solutions
V00608--KMI Corbin and Co.
V00150--Blue Shield of California
Document No
Voided - 11/20MthSrvTBID
11/20MthSrvTBID
PPE 11/14/20 TA
12/20 Dental/Vi
7435
7433
7434
7432
7431
PP 11/23/20 401
21/22 FSA Setup
12/20 Ste 130 L
12/20 Blue Shie
PPE 11/28/20 TA
7436
PP 12/08/20 401
1/21SterlingTBI
7437
7438
7440
7439
PPE 12/12/20 TA
1/21 Dental/Vis
Q2_FY21 M ktg Fees
PP 12/21/20 401
7441
1/21 Blue Shiel
Amount
-477.23
477.23
140.74
576.99
446.17
1,034.26
268.44
9,000.00
379.00
776.97
150.00
10,311.44
4,594.67
140.74
2,336.79
819.52
250.00
209.84
199.86
920.00
517.13
140.74
581.99
27,000.00
819.52
2,600.00
4.594.67
Total for TBIDChecking 165,386.79
.'VISIT ew Aort LT
�� E A C it INC.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2020
Year To Date Year To Date
12/31/2020 12/31/2019
Operating Revenue
Revenue
$ Variance Year over
41000 - TOT/TBID Income
920,296.98
2,656,227.11
(1,735,930.13)
Total Revenue
920,296.98
2,656,227.11
(1,735,930.13)
Other Income
46001 - Interest Income
244.62
591.53
(346.91)
Total Other Income
244.62
591.53
(346.91)
Total Operating Revenue
920,541.60
2,656,818.64
(1,736,277.04)
Expenses
Salary and Wages
61010 - Salaries and Wages
247,371.79
494,079.93
(246,708.14)
61015 - Bonuses and Commissions
0.00
28,107.44
(28,107.44)
61020 - Auto Allowance
5,700.00
8,245.00
(2,545.00)
61030 - Payroll Tax Expenses
18,812.26
35,391.60
(16,579.34)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
272,167.70
565,823.97
(293,656.27)
Benefits
61110 - Medical Insurance
42,052.63
59,684.09
(17,631.46)
61115 - Benefit Administrative Fees
204.03
175.91
28.12
61120 - Dental Insurance
4,145.46
4,032.27
113.19
61125 - Vision Insurance
606.20
709.52
(103.32)
61130 - Life and Disability
8,032.63
7,645.63
387.00
61140 - Retirement Plan (401k)
1,119.86
45,420.71
(44,300.85)
61150 - Flexible Spending Plan
732.87
1,228.10
(495.23)
61160 - Employee Engagement Benefit
2,256.11
6,016.95
(3,760.84)
Total Benefits
59,149.79
124,913.18
(65,763.39)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
607.86
4,292.04
(3,684.18)
64101 - Kitchen Supplies
485.92
2,643.43
(2,157.51)
64110 - Office Equipment Leases
1,200.00
535.18
664.82
64115 - Office Equipment (non-deprec)
1,460.71
1,387.45
73.26
64120 - Equipment Repairs & Maintenance
9,346.20
11,577.75
(2,231.55)
64125 - Computer Software (non-deprec)
6,386.03
6,457.00
(70.97)
64130 - Voice and Data - Office
3,616.72
2,950.91
665.81
64135 - Telephone - Mobile
1,620.00
4,505.28
(2,885.28)
64136 - Cable Expenses
529.48
0.00
529.48
64145 - Shipping Charges
138.92
1,655.10
(1,516.18)
64150 - Bank Fees
0.00
15.00
(15.00)
64160 - Membership Dues
17,321.27
38,611.65
(21,290.38)
64165 - Subscriptions
0.00
80.25
(80.25)
64170 - Team Meetings
1,296.89
17,574.85
(16,277.96)
64175 - Governance Meeting Expenses
0.00
4,727.98
(4,727.98)
.'VISIT ew Aort LT
�� E A C it INC.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2020
Year To Date Year To Date
12/31/2020 12/31/2019
$ Variance Year over
64180 - Education
499.20
13,709.32
(13,210.12)
64190 - Business Licensing and Fees
35.00
291.70
(256.70)
64300 - Depreciation Expense
2,761.66
7,275.87
(4,514.21)
64600 - Business Meals/Entertainment
222.57
5,575.82
(5,353.25)
64400 - Bad Debt Expense
1,056.96
0.00
1,056.96
Total Operating Expenses
48,585.39
123,866.58
(75,281.19)
Office Lease and Expenses
62100 - Office Lease
60,568.61
60,035.08
533.53
62110 - Office Repairs and Maintenance
0.00
2,671.37
(2,671.37)
Total Office Lease and Expenses
60,568.61
62,706.45
(2,137.84)
Insurance
63200 - Workers Compensation Insurance
3,036.38
4,419.54
(1,383.16)
63300 - Board of Directors Insurance
2,488.29
3,594.51
(1,106.22)
Total Insurance
5,524.67
8,014.05
(2,489.38)
Professional Fees
64205 - Payroll Processing Service
1,193.93
1,784.86
(590.93)
64206 - Independent Contractors
0.00
17,100.00
(17,100.00)
67004 - Marketing NBCo Fees
54,000.00
54,000.00
0.00
64201 - Audit Fees
0.00
450.00
(450.00)
64202 - Tax Preparation Fees
1,000.00
(1,000.00)
2,000.00
Total Professional Fees
56,193.93
72,334.86
(16,140.93)
Travel Expenses
65100 - Airfare
0.00
4,037.29
(4,037.29)
65200 - Accommodations
0.00
4,199.89
(4,199.89)
65300 - Meals
0.00
309.14
(309.14)
65400 - Transportation Costs
0.00
1,767.97
(1,767.97)
65405 - Mileage ($0.58/mile 2019)
3.80
0.00
3.80
65500 - Other Travel Costs
0.00
107.00
(107.00)
Total Travel Expenses
3.80
10,421.29
(10,417.49)
Total General and Administrative
170,876.40
277,343.23
(106,466.83)
Advertising Expenses
66101 - Advertising - Purchased
0.00
41,940.00
(41,940.00)
66121 - Promotional Gift Cards
0.00
48,734.45
(48,734.45)
66123 - Promotional Client Gifts
2,203.88
21,703.04
(19,499.16)
66203 - Creative Design/Development
10,468.98
39,159.22
(28,690.24)
Total Advertising Expenses
12,672.86
151,536.71
(138,863.85)
Marketing Expenses
Community Relations
67103 - Community Partner Events
0.00
6,500.00
(6,500.00)
67101 - Research
0.00
1,500.00
(1,500.00)
67104 - Annual Marketing Outlook Event
0.00
74,984.71
(74,984.71)
Total Community Relations
0.00
82,984.71
(82,984.71)
Marketing Collateral
67311 - Collateral Production Expenses
187.59
0.00
187.59
Total Marketing Collateral
187.59
0.00
187.59
VISIT VE
ort
- ,AC Hir~c:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2020
Year To Date Year To Date
12/31/2020 12/31/2019
$Variance Year over
Digital Marketing
67502 - Website Maintenance
3,000.00
0.00
3,000.00
67503 - Online Search Advertising
6,000.00
0.00
6,000.00
67504 - Digital Advertising
3,307.50
0.00
3,307.50
67508 - Website Redesign Expenses
13,272.18
7,827.18
5,445.00
66211 - CRM Maintenance
33,550.00
31,458.33
2,091.67
Total Digital Marketing
59,129.68
39,285.51
19,844.17
Communications/Public Relations
67605 - Media Special Programs
0.00
1,939.98
(1,939.98)
Total Communications/Public Relations
0.00
1,939.98
(1,939.98)
Total Marketing Expenses
59,317.27
124,210.20
(64,892.93)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
4,128.43
31,029.49
(26,901.06)
66222 - Trade Show Registration
3,786.52
165,967.21
(162,180.69)
66223 - Trade Show Booth Expenses
4,572.69
149,708.90
(145,136.21)
Total Trade Show Expense
12,487.64
346,705.60
(334,217.96)
Sponsorships
66231 - Sales Group Enhancement Credit
5,750.00
181,034.80
(175,284.80)
66233 - Industry Partnerships
56,584.47
43,601.24
12,983.23
66234 - Industry Sponsorships
2,500.00
7,494.49
(4,994.49)
Total Sponsorships
64,834.47
232,130.53
(167,296.06)
Sales Initiatives
66207 - Site Inspections
392.67
31,745.15
(31,352.48)
66208 - Client Events
0.00
25,815.71
(25,815.71)
66210 - Conference Services
0.00
165.55
(165.55)
66209 - Database/Prospecting
8,908.36
77,687.58
(68,779.22)
Total Sales Initiatives
9,301.03
135,413.99
(126,112.96)
Total Direct Sales Initiatives
86,623.14
714,250.12
(627,626.98)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
(6,000.00)
88,740.00
(94,740.00)
66247 - Partner Engagement Expenses
803.97
7,231.10
(6,427.13)
66248 - Group Marketing Initiatives
5,580.00
34,215.19
(28,635.19)
Total Customized Destination Support
383.97
130,186.29
(129,802.32)
Total Expenses
661,191.13
2,088,263.70
(1,427,072.57)
Net Income
259,350.47
568,554.94
(309,204.47)
VISIT' el'i� 4Yt
�Q lot EACHINC.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2020
Year To Date Year To Date
11/30/2020 11/30/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
745,112.43
2,228,101.56
(1,482,989.13)
Total Revenue
745,112.43
2,228,101.56
(1,482,989.13)
Other Income
46001 - Interest Income
193.64
536.81
(343.17)
Total Other Income
193.64
536.81
(343.17)
Total Operating Revenue
745,306.07
2,228,638.37
(1,483,332.30)
Expenses
Salary and Wages
61010 - Salaries and Wages
186,068.17
411,759.15
(225,690.98)
61015 - Bonuses and Commissions
0.00
22,459.72
(22,459.72)
61020 - Auto Allowance
4,680.00
6,775.00
(2,095.00)
61030 - Payroll Tax Expenses
14,674.71
29,971.01
(15,296.30)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
205,706.53
470,964.88
(265,258.35)
Benefits
61110 - Medical Insurance
35,542.02
43,673.90
(8,131.88)
61115 - Benefit Administrative Fees
179.03
132.73
46.30
61120 - Dental Insurance
3,493.76
3,448.00
45.76
61125 - Vision Insurance
516.29
607.23
(90.94)
61130 - Life and Disability
6,833.43
7,511.10
(677.67)
61140 - Retirement Plan (401k)
0.00
38,112.52
(38,112.52)
61150 - Flexible Spending Plan
438.48
1,003.18
(564.70)
61160 - Employee Engagement Benefit
2,129.46
5,233.81
(3,104.35)
Total Benefits
49,132.47
99,722.47
(50,590.00)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
467.64
3,786.86
(3,319.22)
64101 - Kitchen Supplies
477.12
1,770.43
(1,293.31)
64110 - Office Equipment Leases
1,000.00
356.70
643.30
64115 - Office Equipment (non-deprec)
1,071.36
1,387.45
(316.09)
64120 - Equipment Repairs & Maintenance
7,852.90
10,132.75
(2,279.85)
64125 - Computer Software (non-deprec)
6,354.53
6,283.00
71.53
64130 - Voice and Data - Office
3,062.47
2,463.27
599.20
64135 - Telephone - Mobile
1,320.00
3,705.28
(2,385.28)
64136 - Cable Expenses
441.23
0.00
441.23
64145 - Shipping Charges
119.66
1,337.16
(1,217.50)
64150 - Bank Fees
0.00
15.00
(15.00)
64160 - Membership Dues
17,321.27
21,028.88
(3,707.61)
64165 - Subscriptions
0.00
80.25
(80.25)
64170 - Team Meetings
1,296.89
17,048.66
(15,751.77)
64175 - Governance Meeting Expenses
0.00
4,527.98
(4,527.98)
VISIT' el'i� 4Yt
�Q lot EACHINC.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2020
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
67104 - Annual Marketing Outlook Event
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Year To Date
Year To Date
11/30/2020
11/30/2019
$ Variance Year over
499.20
15,878.92
(15,379.72)
35.00
291.70
(256.70)
2,357.18
6,637.23
(4,280.05)
222.57
4,545.97
(4,323.40)
1,056.96
0.00
1,056.96
44,955.98
101,277.49
(56,321.51)
50,257.17
49,275.23
981.94
0.00
1,971.02
(1,971.02)
50,257.17
51,246.25
(989.08)
3,036.38
4,419.54
(1,383.16)
2,488.29
3,594.51
(1,106.22)
5,524.67
8,014.05
(2,489.38)
907.85
1,493.90
(586.05)
0.00
14,700.00
(14,700.00)
27,000.00
27,000.00
0.00
0.00
450.00
(450.00)
(2,000.00)
(1,000.00)
(1,000.00)
25,907.85
42,643.90
(16,736.05)
0.00
4,037.29
(4,037.29)
0.00
4,199.89
(4,199.89)
0.00
309.14
(309.14)
0.00
1,714.97
(1,714.97)
3.80
0.00
3.80
0.00
93.00
(93.00)
3.80
10,354.29
(10,350.49)
126,649.47
213,535.98
(86,886.51)
0.00
2,450.00
(2,450.00)
0.00
40,307.65
(40,307.65)
1,603.88
18,628.16
(17,024.28)
10,468.98
10,970.17
(501.19)
12,072.86
72,355.98
(60,283.12)
0.00
5,000.00
(5,000.00)
0.00
1,500.00
(1,500.00)
0.00
74,984.71
(74,984.71)
0.00
81,484.71
(81,484.71)
187.59
0.00
187.59
187.59
0.00
187.59
VISIT evU,ort
E A C L. i t c:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for November 2020
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Year To Date Year To Date
11/30/2020 11/30/2019
3,000.00
6,000.00
3,307.50
11,060.15
33,550.00
56,917.65
0.00
0.00
57,105.24
2,851.23
3,786.52
3,528.21
10,165.96
5,750.00
56,573.91
2.500.00
$Variance Year over
0.00
3,000.00
0.00
6,000.00
0.00
3,307.50
5,615.15
5,445.00
30,000.00
3,550.00
35,615.15
21,302.50
1,939.98
(1,939.98)
1,939.98
(1,939.98)
119,039.84
(61,934.60)
23,524.44
145,432.21
131,216.56
300,173.21
136,341.25
38,312.91
7.494.49
b4,UZ.3.91 1U/.,14U.b5
(20,673.21)
(141, 645.69)
(127, 688.35)
(290,007.25)
(130,591.25)
18,261.00
(4,994.49)
(117,324.74)
82.17
27,477.77
(27,395.60)
0.00
13,967.49
(13,967.49)
0.00
165.55
(165.55)
8,908.36
74,187.58
(65,279.22)
8,990.53
115,798.39
(106,807.86)
83,980.40
598,120.25
(514,139.85)
(5,000.00)
75,240.00
(80,240.00)
803.97
6,291.98
(5,488.01)
5,580.00
25,567.39
(19,987.39)
1,383.97
107,099.37
(105,715.40)
536,030.94
1,680,838.77
(1,144,807.83)
209,275.13
547,799.60
(338,524.47)
VISIT eW ort
EAC Hrz�:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2020
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 -
Salaries and Wages
61015 -
Bonuses and Commissions
61020 -
Auto Allowance
61030 -
Payroll Tax Expenses
61040 -
Accrued PTO Expense
Total Salary and Wages
Benefits
61110 -
Medical Insurance
61115 -
Benefit Administrative Fees
61120 -
Dental Insurance
61125 -
Vision Insurance
61130 -
Life and Disability
61140 -
Retirement Plan (401k)
61150 -
Flexible Spending Plan
61160 -
Employee Engagement Benefit
Total Benefits
General
and Administrative Expenses
Operating Expenses
64100
- Office Supplies
64101
- Kitchen Supplies
64110
- Office Equipment Leases
64115
- Office Equipment (non-deprec)
64120
- Equipment Repairs & Maintenance
64125
- Computer Software (non-deprec)
64130
- Voice and Data - Office
64135
- Telephone - Mobile
64136
- Cable Expenses
64145
- Shipping Charges
64150
- Bank Fees
64160
- Membership Dues
64165
- Subscriptions
64170
- Team Meetings
64175
- Governance Meeting Expenses
64180
- Education
64190
- Business Licensing and Fees
Year To Date Year To Date
10/31/2020 10/31/2019
561,198.96 1,828,944.56
561,198.96 1,828,944.56
129.88 492.75
$Variance Year over
(1,267,745.60)
(1,267,745.60)
(362.87)
561,328.84
1,829,437.31
(1,268,108.47)
148,364.67
329,402.54
(181,037.87)
0.00
22,459.72
(22,459.72)
3,660.00
5,305.00
(1,645.00)
11,701.43
24,474.33
(12,772.90)
283.65
0.00
283.65
164,009.75
381,641.59
(217,631.84)
29,031.41
34,939.12
(5,907.71)
159.03
132.73
26.30
2,842.06
2,863.73
(21.67)
426.38
504.94
(78.56)
4,670.93
6,180.22
(1,509.29)
0.00
32,264.57
(32,264.57)
363.48
1,003.18
(639.70)
1,561.56
4,747.79
(3,186.23)
39,054.85
82,636.28
(43,581.43)
303.76
21554.54
(2,250.78)
469.13
1,521.98
(1,052.85)
800.00
321.70
478.30
843.66
11387.45
(543.79)
5,780.00
8,687.75
(2,907.75)
6,327.53
6,188.50
139.03
2,509.82
1,964.65
545.17
1,020.00
2,905.28
(1,885.28)
352.98
0.00
352.98
96.30
1,044.23
(947.93)
0.00
15.00
(15.00)
16,942.27
18,107.10
(1,164.83)
0.00
80.25
(80.25)
1,296.89
16,924.35
(15,627.46)
0.00
41527.98
(4,527.98)
499.20
8,619.00
(8,119.80)
0.00
281.70
(281.70)
i�VISIT ew ort
EAC H�z :.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2020
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
64400 - Bad Debt Expense
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
67104 - Annual Marketing Outlook Event
Total Community Relations
Digital Marketing
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Year To Date
Year To Date
10/31/2020
10/31/2019
$ Variance Year over
1,885.80
5,998.59
(4,112.79)
104.36
3,981.89
(3,877.53)
1,056.96
0.00
1,056.96
40,288.66
85,111.94
(44,823.28)
39,945.73
39,175.38
770.35
0.00
1,081.02
(1,081.02)
39,945.73
40,256.40
(310.67)
3,036.38
4,419.54
(1,383.16)
2,488.29
3,594.51
(1,106.22)
5,524.67
8,014.05
(2,489.38)
719.43
0.00
27,000.00
0.00
(2,000.00)
25,719.43
0.00
0.00
0.00
0.00
3.80
0.00
3.80
111,482.29
0.00
0.00
181.90
10,468.98
10,650.88
0.00
0.00
0.00
0.00
3,307.50
8,848.12
33,550.00
45,705.62
1,193.74
12,300.00
27,000.00
450.00
(2,600.00)
38,343.74
1,909.74
1,015.59
107.81
1,201.40
0.00
7.00
4,241.54
175,967.67
2,450.00
26,545.15
18,094.61
2,875.11
49,964.87
5,000.00
1,500.00
74,984.71
81,484.71
0.00
3,403.12
22,500.00
25,903.12
(474.31)
(12,300.00)
0.00
(450.00)
600.00
(12,624.31)
(1,909.74)
(1,015.59)
(107.81)
(1,201.40)
3.80
(7.00)
(4,237.74)
(64,485.38)
(2,450.00)
(26,545.15)
(17,912.71)
7,593.87
(39,313.99)
(5,000.00)
(1,500.00)
(74, 984.71)
(81,484.71)
3,307.50
5,445.00
11,050.00
19,802.50
VISIT eW ort
EAC Hrz�:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for October 2020
Year To Date Year To Date
10/31/2020 10/31/2019
Communications/Public Relations
$Variance Year over
67605 - Media Special Programs
0.00
1,939.98
(1,939.98)
Total Communications/Public Relations
0.00
1,939.98
(1,939.98)
Total Marketing Expenses
45,705.62
109,327.81
(63,622.19)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
0.00
19,868.30
(19,868.30)
66222 - Trade Show Registration
2,687.52
112,482.21
(109,794.69)
66223 - Trade Show Booth Expenses
3,528.21
104,658.60
(101,130.39)
Total Trade Show Expense
6,215.73
237,009.11
(230,793.38)
Sponsorships
66231 - Sales Group Enhancement Credit
750.00
120,541.25
(119,791.25)
66233 - Industry Partnerships
35,416.36
35,229.82
186.54
66234 - Industry Sponsorships
0.00
6,294.49
(6,294.49)
Total Sponsorships
36,166.36
162,065.56
(125,899.20)
Sales Initiatives
66207 - Site Inspections
51.50
25,179.46
(25,127.96)
66208 - Client Events
0.00
5,150.81
(5,150.81)
66210 - Conference Services
0.00
165.55
(165.55)
66209 - Database/Prospecting
8,908.36
66,820.94
(57,912.58)
Total Sales Initiatives
8,959.86
97,316.76
(88,356.90)
Total Direct Sales Initiatives
51,341.95
496,391.43
(445,049.48)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
(6,000.00)
66,740.00
(72,740.00)
66247 - Partner Engagement Expenses
803.97
4,291.66
(3,487.69)
66248 - Group Marketing Initiatives
5,580.00
21,844.75
(16,264.75)
Total Customized Destination Support
383.97
92,876.41
(92,492.44)
Total Expenses
422,629.31
1,388,806.06
(966,176.75)
Net Income
138,699.53
440,631.25
(301,931.72)
VISIT w
ort
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2020
Year To Date Year To Date
06/30/2020 06/30/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
4,257,269.37
4,493,806.32
(236,536.95)
Total Revenue
4,257,269.37
4,493,806.32
(236,536.95)
Other Income
10,414.48
11,088.01
(673.53)
Total Operating Revenue
4,267,683.85
4,504,894.33
(237,210.48)
Expenses
Salary and Wages
61010 - Salaries and Wages
949,479.58
952,475.20
(2,995.62)
61015 - Bonuses and Commissions
74,342.16
228,947.29
(154,605.13)
61020 - Auto Allowance
13,745.00
16,770.00
(3,025.00)
61030 - Payroll Tax Expenses
81,308.65
91,019.57
(9,710.92)
61040 - Accrued PTO Expense
781.08
4,459.69
(3,678.61)
Total Salary and Wages
1,119,656.47
1,293,671.75
(174,015.28)
Benefits
61110 - Medical Insurance
107,290.88
93,927.29
13,363.59
61115 - Benefit Administrative Fees
289.09
126.00
163.09
61120 - Dental Insurance
7,250.56
6,864.46
386.10
61125 - Vision Insurance
1,211.38
1,211.84
(0.46)
61130 - Life and Disability
15,544.94
12,672.04
2,872.90
61140 - Retirement Plan (401k)
69,478.96
72,150.42
(2,671.46)
61150 - Flexible Spending Plan
1,518.05
155.57
1,362.48
61160 - Employee Engagement Benefit
6,750.65
8,967.70
(2,217.05)
Total Benefits
209,334.51
196,075.32
13,259.19
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
6,585.18
11,726.25
(5,141.07)
64101 - Kitchen Supplies
3,845.56
0.00
3,845.56
64110 - Office Equipment Leases
535.18
3,440.40
(2,905.22)
64115 - Office Equipment (non-deprec)
2,328.46
5,307.03
(2,978.57)
64120 - Equipment Repairs & Maintenance
21,190.25
17,059.43
4,130.82
64125 - Computer Software (non-deprec)
9,387.18
7,122.15
2,265.03
64130 - Voice and Data - Office
5,457.47
5,810.70
(353.23)
64135 - Telephone - Mobile
8,285.28
10,543.12
(2,257.84)
64145 - Shipping Charges
3,213.32
2,994.75
218.57
64150 - Bank Fees
45.00
105.00
(60.00)
64160 - Membership Dues
41,624.09
38,662.11
2,961.98
64165 - Subscriptions
170.25
476.38
(306.13)
64170 - Team Meetings
21,934.90
12,777.68
9,157.22
64175 - Governance Meeting Expenses
9,559.22
6,557.00
3,002.22
64180 - Education
12,609.32
19,327.28
(6,717.96)
64190 - Business Licensing and Fees
546.84
0.00
546.84
64300 - Depreciation Expense
10,703.65
23,326.08
(12,622.43)
64600 - Business Meals/Entertainment
7,773.15
9,829.37
(2,056.22)
VISIT��w
ort
A C 1- I NC:,
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2020
Year To Date
Year To Date
06/30/2020
06/30/2019
$ Variance Year over
64400 - Bad Debt Expense
31,500.00
0.00
31,500.00
Total Operating Expenses
197,294.30
175,064.73
22,229.57
Office Lease and Expenses
62100 - Office Lease
116,807.29
116,416.75
390.54
62110 - Office Repairs and Maintenance
3,423.91
3,689.67
(265.76)
Total Office Lease and Expenses
120,231.20
120,106.42
124.78
Insurance
63100 - General Liability Insurance
1,168.18
1,163.00
5.18
63200 - Workers Compensation Insurance
4,419.54
8,671.58
(4,252.04)
63300 - Board of Directors Insurance
3,594.51
10,242.00
(6,647.49)
Total Insurance
9,182.23
20,076.58
(10,894.35)
Professional Fees
64203 - Recruiting Fees
0.00
4,900.00
(4,900.00)
64205 - Payroll Processing Service
3,844.81
3,894.58
(49.77)
64206 - Independent Contractors
25,497.00
3,600.00
21,897.00
67004 - Marketing NBCo Fees
108,000.00
93,000.00
15,000.00
64201- Audit Fees
10,950.00
14,450.00
(3,500.00)
64202 - Tax Preparation Fees
1,000.00
3,900.00
(2,900.00)
64204 - Legal Fees
0.00
5,200.00
(5,200.00)
Total Professional Fees
149,291.81
128,944.58
20,347.23
Travel Expenses
65100 - Airfare
5,476.84
4,032.85
1,443.99
65200 - Accommodations
5,086.31
10,435.94
(5,349.63)
65300 - Meals
369.96
1,672.80
(1,302.84)
65400 - Transportation Costs
2,347.03
2,363.70
(16.67)
65500 - Other Travel Costs
215.00
288.43
(73.43)
Total Travel Expenses
13,495.14
18,793.72
(5,298.58)
Total General and Administrative
489,494.68
462,986.03
26,508.65
Advertising Expenses
66101 - Advertising - Purchased
63,141.00
53,604.35
9,536.65
66121 - Promotional Gift Cards
78,957.65
31,366.65
47,591.00
66123 - Promotional Client Gifts
23,173.02
40,000.81
(16,827.79)
66203 - Creative Design/Development
102,598.36
226,742.77
(124,144.41)
66212 - Community Sponsorships
1,756.33
0.00
1,756.33
Total Advertising Expenses
269,626.36
351,714.58
(82,088.22)
Marketing Expenses
Community Relations
67103 - Community Partner Events
6,500.00
0.00
6,500.00
67101- Research
1,500.00
1,690.00
(190.00)
67104 - Annual Marketing Outlook Event
74,984.71
0.00
74,984.71
67108 - Company -Sponsored Events
0.00
1,250.00
(1,250.00)
Total Community Relations
82,984.71
2,940.00
80,044.71
Marketing Collateral
67311 - Collateral Production Expenses
0.00
1,394.08
(1,394.08)
Total Marketing Collateral
0.00
1,394.08
(1,394.08)
Digital Marketing
VISIT W
ort
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for June 2020
Year To Date Year To Date
06/30/2020 06/30/2019
$ Variance Year over
67508 - Website Redesign Expenses
21,099.36
6,806.24
14,293.12
66211 - CRM Maintenance
39,208.33
13,500.00
25,708.33
Total Digital Marketing
60,307.69
20,306.24
40,001.45
Communications/Public Relations
67605 - Media Special Programs
1,939.98
82,207.86
(80,267.88)
Total Communications/Public Relations
1,939.98
82,207.86
(80,267.88)
Total Marketing Expenses
145,232.38
106,848.18
38,384.20
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67404 - International Trade Shows
0.00
50,000.00
(50,000.00)
67411- International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
118,782.35
(118,782.35)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
49,950.23
66,146.05
(16,195.82)
66222 - Trade Show Registration
149,470.21
174,398.06
(24,927.85)
66223 - Trade Show Booth Expenses
182,239.15
100,433.24
81,805.91
Total Trade Show Expense
381,659.59
340,977.35
40,682.24
Sponsorships
66231- Sales Group Enhancement Credit
275,587.51
379,239.51
(103,652.00)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
78,853.74
103,096.66
(24,242.92)
66234 - Industry Sponsorships
7,802.24
109,212.13
(101,409.89)
Total Sponsorships
362,243.49
623,085.83
(260,842.34)
Sales Initiatives
66207 - Site Inspections
37,976.08
51,952.32
(13,976.24)
66208 - Client Events
47,031.07
76,353.94
(29,322.87)
66210 - Conference Services
165.55
157.57
7.98
66209 - Database/Prospecting
98,758.93
101,809.38
(3,050.45)
Total Sales Initiatives
183,931.63
230,273.21
(46,341.58)
Total Direct Sales Initiatives
927,834.71
1,194,336.39
(266,501.68)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
82,878.63
348,573.87
(265,695.24)
66247 - Partner Engagement Expenses
18,736.72
19,224.03
(487.31)
66248 - Group Marketing Initiatives
62,792.66
188,518.33
(125,725.67)
Total Customized Destination Support
164,408.01
556,316.23
(391,908.22)
Total Expenses
3,325,587.12
4,280,730.83
(955,143.71)
Net Income
942,096.73
224,163.50
717,933.23
VISIT ew QYi
t�, E A C H Irr=-
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2020
Year To Date Year To Date
07/31/2020 07/31/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
61,305.65
369,863.43
(308,557.78)
Total Revenue
61,305.65
369,863.43
(308,557.78)
Other Income
26.48
36.01
(9.53)
Total Operating Revenue
61,332.13
369,899.44
(308,567.31)
Expenses
Salary and Wages
61010 - Salaries and Wages
35,254.16
41,178.31
(5,924.15)
61020 - Auto Allowance
600.00
895.00
(295.00)
61030 - Payroll Tax Expenses
2,781.55
3,170.38
(388.83)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
38,919.36
45,243.69
(6,324.33)
Benefits
61110 - Medical Insurance
11,105.28
8,912.01
2,193.27
61115 - Benefit Administrative Fees
99.03
42.00
57.03
61120 - Dental Insurance
906.69
1,162.24
(255.55)
61125 - Vision Insurance
156.65
202.07
(45.42)
61130 - Life and Disability
1,716.33
11170.51
545.82
61140 - Retirement Plan (401k)
0.00
9,421.47
(9,421.47)
61150 - Flexible Spending Plan
178.49
824.65
(646.16)
61160 - Employee Engagement Benefit
126.65
1,527.90
(1,401.25)
Total Benefits
14,289.12
23,262.85
(8,973.73)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
170.09
1,190.35
(1,020.26)
64101 - Kitchen Supplies
17.50
352.29
(334.79)
64110 - Office Equipment Leases
200.00
286.70
(86.70)
64120 - Equipment Repairs & Maintenance
1,445.00
0.00
1,445.00
64125 - Computer Software (non-deprec)
5,985.22
5,909.50
75.72
64130 - Voice and Data - Office
478.84
489.56
(10.72)
64135 - Telephone - Mobile
120.00
505.28
(385.28)
64145 - Shipping Charges
19.26
74.99
(55.73)
64150 - Bank Fees
0.00
15.00
(15.00)
64160 - Membership Dues
16,942.27
6,643.78
10,298.49
64165 - Subscriptions
0.00
8.07
(8.07)
64170 - Team Meetings
77.04
16,381.91
(16,304.87)
64180 - Education
0.00
5,000.00
(5,000.00)
VISIT ew QYi
t�, E A C H Irr=-
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2020
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66123 - Promotional Client Gifts
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
Total Community Relations
Digital Marketing
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Year To Date
Year To Date
07/31/2020
07/31/2019
$ Variance Year over
471.45
1,616.35
(1,144.90)
0.00
98.08
(98.08)
25,926.67
38,571.86
(12,645.19)
12,878.97
9,687.10
3,191.87
12,878.97
9,687.10
3,191.87
3,036.38
4,419.54
(1,383.16)
429.29
1,448.00
(1,018.71)
3,465.67
5,867.54
(2,401.87)
163.37
147.78
15.59
0.00
5,100.00
(5,100.00)
(7,500.00)
(11,000.00)
3,500.00
(2,000.00)
(2,600.00)
600.00
(9,336.63)
(8,352.22)
(984.41)
32,934.68
45,774.28
(12,839.60)
0.00
2,250.00
(2,250.00)
0.00
39.95
(39.95)
0.00
2,289.95
(2,289.95)
0.00
2,500.00
(2,500.00)
0.00
1,500.00
(1,500.00)
0.00
4,000.00
(4,000.00)
2,212.03
850.78
1,361.25
5,000.00
7,750.00
(2,750.00)
7,212.03
8,600.78
(1,388.75)
0.00 381.53
0.00 381.53
7,212.03 12,982.31
0.00
2,687.52
1,439.25
4,126.77
5,343.75
26,559.96
n.Q1 79
(381.53)
(381.53)
(5,770.28)
(5,343.75)
(23,872.44)
957.53
32,385.43 (28,258.66)
VISIT ew QYi
t�, E A C H Irr=-
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2020
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Year To Date
Year To Date
07/31/2020
07/31/2019
$ Variance Year over
0.00
35,054.45
(35,054.45)
30,965.00
5,288.33
25,676.67
0.00
2,478.09
(2,478.09)
30,965.00
42,820.87
(11,855.87)
0.00
6,725.08
(6,725.08)
0.00
69.00
(69.00)
0.00
49.74
(49.74)
8,808.36
32,761.84
(23,953.48)
8,808.36
39,605.66
(30,797.30)
43,900.13
114,811.96
(70,911.83)
0.00
26,680.00
(26,680.00)
803.97
33.98
769.99
0.00
3,329.53
(3,329.53)
803.97
30,043.51
(29,239.54)
138,059.29
274,408.55
(136,349.26)
(76,727.16)
95,490.89
(172,218.05)
VISIT e ort
E A C H I rrc.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2020
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61020 - Auto Allowance
61030 - Payroll Tax Expenses
61040 - Accrued PTO Expense
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64136 - Cable Expenses
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
Year To Date Year To Date
08/31/2020 08/31/2019
196,711.07 801,997.45
196,711.07 801,997.4S
47.98 S7.2S
$ Variance Year over
(605,286.38)
(605,286.38)
(9.27)
196,759.05
802,054.70
(605,295.65)
72,957.66
164,713.21
(91,755.55)
1,620.00
2,365.00
(745.00)
5,754.85
11,736.63
(5,981.78)
283.65
0.00
283.65
80,616.16
178,814.84
(98,198.68)
17,615.89
17,469.56
146.33
119.03
42.00
77.03
1,558.39
1,695.19
(136.80)
246.56
300.36
(53.80)
2,915.53
2,322.11
593.42
0.00
16,286.48
(16,286.48)
178.49
178.53
(0.04)
253.30
2,338.05
(2,084.75)
22,887.19
40,632.28
(17,745.09)
183.12
1,629.40
(1,446.28)
30.41
705.81
(675.40)
400.00
286.70
113.30
420.21
0.00
420.21
2,890.00
0.00
2,890.00
6,012.22
6,004.00
8.22
1,405.91
985.09
420.82
420.00
1,305.28
(885.28)
176.49
0.00
176.49
38.52
614.97
(576.45)
0.00
15.00
(15.00)
16,942.27
9,201.55
7,740.72
0.00
72.18
(72.18)
77.04
16,813.30
(16,736.26)
0.00
4,527.98
(4,527.98)
viSIT e4Yt
A C 11 i N c.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2020
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
Total Community Relations
Digital Marketing
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Year To Date Year To Date
08/31/2020 08/31/2019
499.20
6,195.00
0.00
281.70
942.90
3,094.77
n.nn
1.695.68
5U,456.L7 S3,4/.U.41
20,223.24 19,388.42
UK) 7n.nn
LU,LL3.L4 17,4')U.4L
3,036.38 4,419.54
2.4RR.29 1.44UM
$ Variance Year over
(5,695.80)
(281.70)
(2,151.87)
(1,695.68)
(22, 990.12)
834.82
(70.00)
764.82
(1,383.16)
1,040.29
5,524.67 5,867.54 (342.87)
349.49
593.42
0.00
7,500.00
27,000.00
27,000.00
(5,000.00)
(6,000.00)
(2,000.00)
(2,600.00)
20.349.49
26.493.42
0.00
795.00
0.00
35.26
3.80
0.00
n nn
7 nn
S.8U USY.Lb
76,539.49 106,085.05
(243.93)
(7,500.00)
0.00
1,000.00
600.00
(6,143.93)
(795.00)
(35.26)
3.80
(7.00)
(833.46)
(29,545.56)
0.00
2,250.00
(2,250.00)
0.00
12,507.70
(12,507.70)
68.83
208.43
(139.60)
468.98
0.00
468.98
537.81
14,966.13
(14,428.32)
0.00
2,500.00
(2,500.00)
0.00
1,500.00
(1,500.00)
0.00
4,000.00
(4,000.00)
4,424.06
1,701.56
2,722.50
5,000.00
7,750.00
(2,750.00)
9,424.06
9,451.56
(27.50)
viSIT e4Yt
A C 11 i N c.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2020
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Year To Date Year To Date
08/31/2020 08/31/2019
0.00
0.00
9,424.06
0.00
2,687.52
1,439.25
4,126.77
1,939.98
1,939.98
15,391.54
7,820.90
40,658.96
58,825.55
107,305.41
0.00
53,083.85
30,965.00
8,076.66
0.00
4,444.49
30,965.00
65,605.00
20.83
15,266.66
0.00
1,178.53
0.00
52.24
8,908.36
36,261.84
8,929.19
52,759.27
44,020.96
225,669.68
(1,000.00)
803.97
5,580.00
5,383.97
239,409.64
36,180.00
1,522.69
5,924.24
43,626.93
625,186.45
Net Income (42,650.591 176,868.25
$ Variance Year over
(1,939.98)
(1,939.98)
(5,967.48)
(7,820.90)
(37, 971.44)
(57,386.30)
(103,178.64)
(53, 083.85)
22, 888.34
(4,444.49)
(34, 640.00)
(15,245.83)
(1,178.53)
(52.24)
(27,353.48)
(43,830.08)
(181, 648.72)
(37,180.00)
(718.72)
(344.24)
(38,242.96)
(385, 776.81)
(219,518.84)
' VISIT ew ort"
G�.. E A C H zrc.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2020
Year To Date Year To Date
09/30/2020 09/30/2019
$Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
366,482.12
1,349,772.40
(983,290.28)
Total Revenue
366,482.12
1,349,772.40
(983,290.28)
Other Income
68.62
454.07
(385.45)
Total Operating Revenue
366,550.74
1,350,226.47
(983,675.73)
Expenses
Salary and Wages
61010 - Salaries and Wages
110,661.17
247,045.93
(136,384.76)
61015 - Bonuses and Commissions
0.00
5,647.72
(5,647.72)
61020 - Auto Allowance
2,640.00
3,835.00
(1,195.00)
61030 - Payroll Tax Expenses
8,728.13
17,684.32
(8,956.19)
61040 - Accrued PTO Expense
283.65
0.00
283.65
Total Salary and Wages
122,312.95
274,212.97
(151,900.02)
Benefits
61110 - Medical Insurance
24,126.50
26,204.34
(2,077.84)
61115 - Benefit Administrative Fees
139.03
132.73
6.30
61120 - Dental Insurance
2,190.36
2,279.46
(89.10)
61125 - Vision Insurance
336.47
402.65
(66.18)
61130 - Life and Disability
3,988.86
3,652.99
335.87
61140 - Retirement Plan (401k)
0.00
23,217.51
(23,217.51)
61150 - Flexible Spending Plan
363.48
1,003.18
(639.70)
61160 - Employee Engagement Benefit
640.94
4,669.89
(4,028.95)
Total Benefits
31,785.64
61,562.75
(29,777.11)
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
245.05
1,796.37
(1,551.32)
64101 - Kitchen Supplies
30.41
1,120.94
(1,090.53)
64110 - Office Equipment Leases
600.00
321.70
278.30
64115 - Office Equipment (non-deprec)
843.66
238.72
604.94
64120 - Equipment Repairs & Maintenance
4,335.00
7,242.75
(2,907.75)
64125 - Computer Software (non-deprec)
6,296.03
6,098.50
197.53
64130 - Voice and Data - Office
1,957.59
1,473.38
484.21
64135 - Telephone - Mobile
720.00
2,105.28
(1,385.28)
64136 - Cable Expenses
352.98
0.00
352.98
64145 - Shipping Charges
57.78
767.10
(709.32)
64150 - Bank Fees
0.00
15.00
(15.00)
64160 - Membership Dues
16,942.27
11,649.33
5,292.94
64165 - Subscriptions
0.00
72.18
(72.18)
64170 - Team Meetings
77.04
16,813.30
(16,736.26)
64175 - Governance Meeting Expenses
0.00
4,527.98
(4,527.98)
64180 - Education
499.20
8,520.00
(8,020.80)
64190 - Business Licensing and Fees
0.00
281.70
(281.70)
' VISIT ew ort"
G�.. E A C H zrc.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2020
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
Total Community Relations
Digital Marketing
67504 - Digital Advertising
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Year To Date
Year To Date
09/30/2020
09/30/2019
1,414.35
4,515.06
104.36
3,183.77
34,475.72
70,743.06
30,334.86
n nn
su,ss'r. m
3,036.38
2,488.29
5,524.67
535.61
0.00
27,000.00
0.00
(2,000.00)
25,535.61
0.00
0.00
0.00
0.00
3.80
0.00
3.80
95,874.66
0.00
0.00
181.90
468.98
Arn uu
0.00
0_00
n_nn
3,307.50
6,636.09
28,550.00
38,493.59
0.00
$ Variance Year over
(3,100.71)
(3,079.41)
(36,267.34)
29,075.53
1,259.33
1,005.00
(1,005.00)
30,080.53
254.33
4,419.54
(1,383.16)
3,594.51
(1,106.22)
8,014.05
(2,489.38)
886.68
(351.07)
9,900.00
(9,900.00)
27,000.00
0.00
(5,550.00)
5,550.00
(2,600.00)
600.00
29,636.68
(4,101.07)
1,733.14
(1,733.14)
403.18
(403.18)
26.20
(26.20)
977.24
(977.24)
0.00
3.80
7.00
(7.00)
31146.76
(3,142.96)
141,621.08
(45,746.42)
2,450.00
(2,450.00)
26,545.15
(26,545.15)
208.43
(26.53)
260.00
208.98
29,463.58
(28,812.70)
5,000.00
1,500.00
6,500.00
0.00
2,552.34
22,500.00
25,052.34
1,939.98
(5,000.00)
(1,500.00)
(6,500.00)
3,307.50
4,083.75
6,050.00
13,441.25
(1,939.98)
VISIT e'�j ort
G�, E A C H iNc.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2020
Total Communications/Public Relations
Total Marketing Expenses
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Year To Date Year To Date
09/30/2020 09/30/2019
0.00 1,939.98
38,493.59 33,492.32
$Variance Year over
(1,939.98)
5,001.27
0.00
17,206.08
(17,206.08)
2,687.52
53,333.96
(50,646.44)
2,483.73
87,961.78
(85,478.05)
5,171.25
158,501.82
(153,330.57)
0.00
97,709.30
(97,709.30)
31,003.94
11,173.99
19,829.95
0.00
6,294.49
(6,294.49)
31,003.94
115,177.78
(84,173.84)
20.83
21,498.58
(21,477.75)
0.00
1,242.71
(1,242.71)
0.00
52.24
(52.24)
8,908.36
40,739.11
(31,830.75)
8,929.19
63,532.64
(54,603.45)
45,104.38
337,212.24
(292,107.86)
(6,000.00)
48,640.00
(54,640.00)
803.97
1,853.27
(1,049.30)
5,580.00
10,400.03
(4,820.03)
383.97
60,893.30
(60,509.33)
334,606.07
938,458.24
(603,852.17)
31,944.67
411,768.23
(379,823.56)
Company Name:
Report Name:
Created On:
Location:
Bank
TBIDChecking - Union Bank NA
Total for TBIDChecking
Visit Newport Beach, Inc.
Check Register
10/30/2020
400--Visit Newport Beach, Inc. Group Sales
Date
Account No: 0030025482
7/1/2020
7/3/2020
7/6/2020
7/7/2020
7/8/2020
7/9/2020
7/13/2020
7/14/2020
7/14/2020
7/20/2020
7/21/2020
7/21/2020
7/23/2020
7/30/2020
7/30/2020
7/30/2020
7/30/2020
7/30/2020
7/31/2020
7/31/2020
8/3/2020
8/4/2020
8/4/2020
8/5/2020
8/6/2020
8/11/2020
8/18/2020
8/18/2020
8/19/2020
8/21/2020
8/26/2020
8/27/2020
8/27/2020
8/31/2020
9/1/2020
9/1/2020
9/1/2020
9/3/2020
9/8/2020
9/14/2020
9/15/2020
9/15/2020
9/22/2020
9/22/2020
9/28/2020
9/29/2020
9/29/2020
9/29/2020
9/29/2020
Vendor
V01563--Standard Insurance Company
V01143--The Irvine Company, LLC
V00150--Blue Shield of California
V01117--TASC
V01190--Transamerica Retirement Solutions
V00798--Northstar Travel Media
V00608--KMJ Corbin and Co.
V00833--Orange County Tax Collector
V01833--Future Plan by Ascensus
V01117--TASC
V01740--Choice Builder
V01621--AmTrust North America
V01190--Transamerica Retirement Solutions
V01721--Wells Fargo Vendor Fin Sery
V01038--Skyward Technical Solutions
V01563--Standard Insurance Company
V01564--Standard Insurance RAS Executive
V00608--KMJ Corbin and Co.
V01451--Michelle Donahue
V01451--Michelle Donahue
V01117--TASC
V01190--Transamerica Retirement Solutions
V01117--TASC
V01143--The Irvine Company, LLC
V00150--Blue Shield of California
V00302--Cvent, Inc.
V01721--Wells Fargo Vendor Fin Sery
V01117--TASC
V01190--Transamerica Retirement Solutions
V01740--Choice Builder
V01377--Newport Beach and Company
V01038--Skyward Technical Solutions
V01564--Standard Insurance RAS Executive
V01117--TASC
V01190--Transamerica Retirement Solutions
V01117--TASC
V01563--Standard Insurance Company
V01143--The Irvine Company, LLC
V00150--Blue Shield of California
V01117--TASC
V01117--TASC
V01190--Transamerica Retirement Solutions
V01740--Choice Builder
V00608--KMJ Corbin and Co.
V01117--TASC
V01564--Standard Insurance RAS Executive
V01721--Wells Fargo Vendor Fin Sery
V01117--TASC
V01190--Transamerica Retirement Solutions
Document No
7396
7/20 Ste 130 Le
7/20 BlueShield
PPE 6/27/20 TAS
PP 7/1/20 401(k
1137
7397
7399
7398
PPE 7/11/20 TAS
8/20 Dental/Vis
7400
PP 7/17/20 401(
7405
7403
7404
7401
7402
Voided - PP7/31/20 and
PP7/31/20 and
PPE7/31/20TASC2
PP 7/31/20 401(
PPE7/31/20TASC1
8/20 Ste 130 Le
8/20 Blue Shiel
7406
7407
PPE 8/8/20 TASC
PP 8/14/20 401(
9/20 Dental/Vis
QS_FY21 Marketi
7409
7408
PPE 8/22/20 TAS
PP 8/28/20 401(
PPE8/22/20TASC2
7410
9/20 Ste 130 Le
9/20 Blue Shiel
PPE9/5/20 TASC1
PPE9/5/20 TASC2
PP 9/11/20 401(
10/20 Dental/Vi
7411
PPE9/19/20TASC1
7413
7412
PPE9/19/20TASC2
PP 9/25/20 401(
Amount
446.17
10,111.62
4,594.67
140.74
2,076.97
7,200.00
2,000.00
255.14
681.16
140.74
341.73
2,638.00
2,076.97
247.86
1,445.00
446.17
517.13
1,000.00
-1,003.24
1,003.24
74.07
2,065.97
66.67
7,344.27
4,594.67
12,500.00
213.03
140.74
2,076.97
576.99
27,000.00
1,865.21
517.13
74.07
2,076.97
66.67
446.17
10,111.62
4,594.67
85.18
55.56
2,076.97
557.26
2,500.00
85.18
517.13
261.93
55.56
2,076.97
121,037.70
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Created On:
10/30/2020
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor
Document No
TBIDChecking - Union Bank NA
Account No: 0030025482
4/1/2020
V01038--Skyward Technical Solutions
7378
1,445.00
4/1/2020
V00642--Liberty Mutual
7377
1,182.66
4/1/2020
V01563--Standard Insurance Company
7376
610.70
4/1/2020
V01083--Staples
7373
21.22
4/1/2020
V01797--Spark Branding House, INC
7372
27,500.00
4/1/2020
V01620--Lido House, LLC
7375
1,678.46
4/1/2020
V01094--Strategic Database Research
7374
3,000.00
4/1/2020
V00767--Newport Beach Bayview Marriott
7373
2,631.61
4/3/2020
V01190--Transamerica Retirement Solutions
PP 3/27/20 401(
5,647.18
4/6/2020
V00150--Blue Shield of California
4/20 Health Ins
7,850.75
4/7/2020
V00423--Franchise Tax Board
PP 3/27/20-Hoy
200.00
4/7/2020
V01190--Transamerica Retirement Solutions
PP 4/3/20 401(k
2,383.34
4/13/2020
V01117--TASC
PPE 4/4/20TASC
85.18
4/13/2020
V00604--Kim Kelley Productions
7379
1,260.00
4/14/2020
V01117--TASC
PPE4/4/20TASC-2
55.56
4/14/2020
V01190--Transamerica Retirement Solutions
PP 4/10/20 401(
1,980.86
4/16/2020
V00423--Franchise Tax Board
PP 4/3/20-Hoy
200.00
4/21/2020
V01740--Choice Builder
5/20 DentalNis
840.65
4/23/2020
V01346--Intacct
7381
7,070.00
4/23/2020
V01797--Spark Branding House, INC
7380
2,250.00
4/27/2020
V01117--TASC
PPE 4/18/20TASC
140.74
4/29/2020
V01190--Transamerica Retirement Solutions
PP 4/24/20 401(
1,980.86
4/29/2020
V01038--Skyward Technical Solutions
7382
1,445.00
4/30/2020
V01564--Standard Insurance RAS Executive
7385
649.82
4/30/2020
V01563--Standard Insurance Company
7384
610.70
4/30/2020
V00918--Premier Displays and Exhibits
7383
6,975.93
5/5/2020
V01143--The Irvine Company, LLC
5/20 Ste130 Lea
543.55
5/5/2020
V01143--The Irvine Company, LLC
4/20 Ste130 Lea
543.55
5/6/2020
V00150--Blue Shield of California
5/20 Health ins
7,117.11
5/7/2020
V00920--Prestige Concepts Promotion and Ever
7386
1,756.33
5/11/2020
V01117--TASC
PPE 5/2/20 TASC
140.74
5/13/2020
V01190--Transamerica Retirement Solutions
PP 5/8/20 401(k
1,844.76
5/21/2020
V01740--Choice Builder
6/20 DentalNis
414.94
5/26/2020
V01117--TASC
PPE 5/16/20 TAS
140.74
5/28/2020
V01190--Transamerica Retirement Solutions
PP 5/22/20 401(
1,940.16
5/29/2020
V01038--Skyward Technical Solutions
7387
1,595.00
6/2/2020
V01377--Newport Beach and Company
Q4_FY20 Market!
27,000.00
6/3/2020
V01143--The Irvine Company, LLC
6/20 Ste 130 Le
10,099.85
6/4/2020
V00150--Blue Shield of California
6/20 Blueshield
1,705.41
6/4/2020
V00921--Prestige Global Meeting Source
Voided - 7148
-5,000.00
6/8/2020
V01117--TASC
PPE 5/30/20 TAS
140.74
6/10/2020
V01564--Standard Insurance RAS Executive
7389
384.44
6/10/2020
V00920--Prestige Concepts Promotion and Ever
7388
160.76
6/11/2020
V01190--Transamerica Retirement Solutions
PP 6/5/20 401(k
1,974.40
6/11/2020
V01823--Suzanne Lynne Draper
1136
917.76
6/11/2020
V01823--Suzanne Lynne Draper
Voided - 7353
-917.76
6/11/2020
V01498--Newport Beach Country Club*
7390
485.00
6/15/2020
V01083--Staples
7392
27.88
6/15/2020
V01563--Standard Insurance Company
7391
281.64
6/22/2020
V01117--TASC
PPE 6/13/20 TAS
140.74
6/23/2020
V01740--Choice Builder
7/20 DentalNis
576.99
6/24/2020
V01190--Transamerica Retirement Solutions
PP 6/19/20 401(
2,076.97
6/24/2020
V01797--Spark Branding House, INC
7393
20,000.00
6/25/2020
V01038--Skyward Technical Solutions
7394
2,302.52
6/30/2020
V01564--Standard Insurance RAS Executive
7395
517.13
Total for TBIDChecking
158,607.57
KMJCorbin &
Company
Business Advisors Tax and Audit
September 30, 2020
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Newport Beach & Company (the
"Organization") as of and for the year ended June 30, 2020, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly,
we do not express an opinion on the effectiveness of the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and corrected
on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either
reasonably possible or probable as defined as follows:
• Reasonably possible. The chance of the future event or events occurring is more than remote but
less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. Given these
limitations, during out audit we did not identify any deficiencies in internal controls that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
This communication is intended solely for the information and use of management, the Board of Directors,
and others within the Organization and is not intended to be and should not be used by anyone other than
these specified parties.
Very truly yours,
KMJ Corbin & Company LLP
p 714 380 6565 f 714 380 6566 18201 Von Karman Avenue Suite 450 Irvine CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
KMY
Corbin &Company
Business Advisors Tax and Audit
September 30, 2020
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Newport Beach & Company (the "Organization") as
of and for the year ended June 30, 2020, and have issued our report thereon dated September 30,
2020. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated June 24, 2020 our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, as part of our audit, we
considered the internal control of the Organization solely for the purpose of determining our
audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated August 26, 2020.
p 714 380 6565 f 714 380 6566 18201 Von Karman Ave., Suite 450 Irvine, CA 92612 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Newport Beach & Company
September 30, 2020
Page 2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the
Organization's management has been responsible for (a) making all management decisions and
performing all management functions; (b) assigning a competent individual to oversee the
services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting
responsibility for the results of the services performed; and (e) establishing and maintaining
internal controls, including monitoring ongoing activities.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU 2018-08 — Not -for -Profit Entities (Topic
958): Clarifying the Scope and the Accounting Guidance for Contributions Received and
Contributions Made, there have been no initial selection of accounting policies and no changes
in significant accounting policies or their application during the year ended June 30, 2020. No
matters have come to our attention that would require us, under professional standards, to inform
you about (1) the methods used to account for significant unusual transactions and (2) the effect
of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's current judgments. Those judgments are normally based on
knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
markedly from management's current judgments. Significant estimates made by the
Organization's management include, but are not limited to, the sufficiency of its cash to fund
operations for the next twelve months, the collectibility of accounts receivable, the recoverability
of long-lived assets, and the allocation of expenses to program activities and general and
administrative
• Management's estimate of the sufficiency of its cash and investment resources to fund
operations for the next twelve months is based on the Organization's forecast of future
income and obligations.
Newport Beach & Company
September 30, 2020
Page 3
• Management's estimate of the collectability of accounts receivables is based on assessing
the potential uncollectible receivables outstanding using the specific identification
method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose of the expenditures incurred during the
year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures
affecting the Organizations financial statements relate to related -party transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. There were no uncorrected misstatements during the year ended June 30,
2020.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. There were no corrected misstatements during the year ended June 30, 2020.
Newport Beach & Company
September 30, 2020
Page 4
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
attached letter dated September 30, 2020.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In December 2019, a novel strain of coronavirus disease ("COVID-19") was first reported in
Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization
declared COVID-19 a global pandemic. The extent of COVID-19's effect on the Organization's
operational and financial performance will depend on future developments, including the
duration, spread and intensity of the pandemic, all of which are uncertain and difficult to predict
considered the rapidly evolving landscape. The Organization is currently analyzing the potential
impacts to all of its business segments. At this time, it is not possible to determine the magnitude
of the overall impact of COVID-19 on the Organization. However, it could have a material
adverse effect on the Organization's financial condition, liquidity, results of operations, and cash
flows. In the short term, one of the impacts of the pandemic is that the Organization's revenues
have declined, but the Organization cannot predict whether this decline is temporary or not.
During the year ended June 30, 2020, the Organization took certain cost cutting measures
including reducing discretionary marketing and other expenses, and reducing payroll through pay
cuts, furloughs, and reduction in its workforce. The Organization believes these measures, along
with its existing cash, will be sufficient to cover its cash flow requirements for at least the next
twelve months from the date of issuance of these financial statements. However, there can be no
assurance that the Organization will not use its existing capital resources sooner than currently
expected.
In the normal course of our professional association with the Organization, we generally discuss
a variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as the Organization's auditors.
Newport Beach & Company
September 30, 2020
Page 5
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
v-Mj- Wr-'W � Luyv n L -P
KMJ Corbin & Company LLP
KMJCorbin &
Company
Business Advisors Tax and Audit
September 30, 2020
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Visit Newport Beach, Inc.
(the "Organization") as of and for the year ended June 30, 2020, in accordance with auditing
standards generally accepted in the United States of America, we considered the Organization's
internal control over financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Organization's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A reasonable possibility exists
when the likelihood of an event occurring is either reasonably possible or probable as defined as
follows:
Reasonably possible. The chance of the future event or events occurring is more than remote but
less than likely.
Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph
and was not designed to identify all deficiencies in internal control that might be material
weaknesses. Given these limitations, during out audit we did not identify any deficiencies in
internal controls that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
ICM j" Wr-,v,, � 104%n LL?
KMJ Corbin & Company LLP
p 714 380 6565 f 714 380 6566 18201 Von Karman Avenue Suite 450 Irvine CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
KMJCorbing� Company
Business Advisors Tax and Audit
September 30, 2020
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Visit Newport Beach Inc. (the "Organization") as of
and for the year ended June 30, 2020, and have issued our report thereon dated September 30,
2020. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated June 24, 2020, our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial statements
that have been prepared by management with your oversight are presented fairly, in all material
respects, in accordance with accounting principles generally accepted in the United States of
America. Our audit of the financial statements does not relieve you or management of its respective
responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Organization's internal control over financial reporting. Accordingly, as part of our audits, we
considered the internal control of the Organization solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
In conjunction with the annual audit, we also performed an examination of management's assertion
included in the Management Statement Regarding Compliance with Certain Provisions of the
Agreement Between the City of Newport Beach and the Organization for Tourism Promotion,
Branding, and Marketing Services, that the Organization complied with the provisions in Section
4 of the Agreement Between the City of Newport Beach and Visit Newport Beach, Inc. for Tourism
Promotion, Branding, and Marketing Services regarding the 2020 Expenditures Report,
summarizing the expenditures of funds received pursuant to the Agreement during the year ended
June 30, 2020.
p 714 380 6565 f 714 380 6566 18201 Von Karman Ave., Suite 450 Irvine, CA 92612 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach Inc.
September 30, 2020
Page 2
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated August 26, 2020.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the Organization's
management has been responsible for (a) making all management decisions and performing all
management functions; (b) assigning a competent individual to oversee the services; (c) evaluating
the adequacy of the services performed; (d) evaluating and accepting responsibility for the results
of the services performed; and (e) establishing and maintaining internal controls, including
monitoring ongoing activities.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU 2018-08 — Not -for -Profit Entities (Topic
958): Clarifying the Scope and the Accounting Guidance for Contributions Received and
Contributions Made, there have been no initial selection of accounting policies and no changes in
significant accounting policies or their application during the year ended June 30, 2020. No matters
have come to our attention that would require us, under professional standards, to inform you about
(1) the methods used to account for significant unusual transactions and (2) the effect of significant
accounting policies in controversial or emerging areas for which there is a lack of authoritative
guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly
Visit Newport Beach Inc.
September 30, 2020
Page 3
from management's current judgments. Significant estimates made by the Organization's
management include, but are not limited to, the sufficiency of its cash and investment resources to
fund operations for the next twelve months, the collectibility of accounts receivable, the
recoverability of long-lived assets, fair value of investments and the allocation of expenses to
program activities and general and administrative.
• Management's estimate of the sufficiency of its cash and investment resources to fund
operations for the next twelve months is based on the Organization's forecast of future
income and obligations.
• Management's estimate of the collectibility of accounts receivables is based on assessing
the potential uncollectible receivables outstanding using the specific identification method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
• Management's estimate of the fair value of investments is based on the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal,
or in the absence of a principal market, the most advantageous market for the asset or
liability, in an orderly transaction between market participants on the measurement date.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose and nature of the expenditures incurred
during the year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting
the Organization's financial statements relate to disclosure of COVID-19 impacts including
liquidity and related -party transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance
of the audit.
Visit Newport Beach Inc.
September 30, 2020
Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods on
the relevant classes of transactions, account balances or disclosures, and the financial statements
as a whole. The attached Exhibit A summarizes the uncorrected financial statement misstatement
whose effect in the current and prior periods, as determined by management, is immaterial to the
financial statements taken as a whole.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
There were no material corrected misstatements that we identified as a result of our audit
procedures that were brought to the attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in a
separate letter dated September 30, 2020.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In December 2019, a novel strain of coronavirus disease ("COVID-19") was first reported in
Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization
declared COVID-19 a global pandemic. The extent of COVID-19's effect on the Organization's
operational and financial performance will depend on future developments, including the duration,
spread and intensity of the pandemic, all of which are uncertain and difficult to predict considered
the rapidly evolving landscape. The Organization is currently analyzing the potential impacts to
all of its business segments. At this time, it is not possible to determine the magnitude of the overall
impact of COVID-19 on the Organization. However, it could have a material adverse effect on the
Organization's financial condition, liquidity, results of operations, and cash flows. In the short
Visit Newport Beach Inc.
September 30, 2020
Page 5
term, one of the impacts of the pandemic is that the Organization's revenues have declined, but
the Organization cannot predict whether this decline is temporary or not. During the year ended
June 30, 2020, the Organization took certain cost cutting measures including reducing
discretionary marketing and other expenses, and reducing payroll through pay cuts, furloughs, and
reduction in its workforce. The Organization believes these measures, along with its existing cash
and cash equivalents and investments, will be sufficient to cover its cash flow requirements for at
least the next twelve months from the date of issuance of these financial statements. However,
there can be no assurance that the Organization will not use its existing capital resources sooner
than currently expected.
In the normal course of our professional association with the Organization, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed resulted
in a condition to our retention as the Organization's auditors.
Supplemental Information
The supplementary information contained in Schedules I and II of the financial statements is
presented for purposes of additional analysis and is not a required part of the 2020 financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the 2020 financial statements.
The information has been subjected to the auditing procedures applied in the audit of the 2020
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the 2020
financial statements or the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone other
than these specified parties.
Very truly yours,
V—MJ- Mtn LLP
KMJ Corbin & Company LLP
Exhibit A
Summary of Uncorrected Misstatements
For the year ended June 30, 2020
Financial Statement Effects
Increase
Increase
Increase
Increase
(Decrease)
(Decrease)
(Decrease)
(Decrease)
Total
Total
Net
Change In
Description of Uncorrected Misstatements
Debit Credit
Assets
Liabilities
Assets
Net Assets
PJE # 1
Website development costs, net
$ 15,805
Net assets without donor restrictions
$ 6,806
Depreciation and amortization
$ 8,999
$ 15,805
$
$ 15,805
$ 8,999
To true up the accumulated amortization
account as of YE due to amortization of a
50% deposit in the 2018 prior to services
being rendered.
$ 15,805 $ 15,805
$ 15,805
$
$ 15,805
$ 8,999
Effect of Prior -Period Uncorrected
Misstatements
-
(13,466)
(13,466)
Rollover Effect of Uncorrected
Misstatements
$ 15,805
$
$ 2,339
$ (4,467)
FS $
$ 4,818,646
$ 355,624
$ 4,463,022
$ 1,640,414
FS %
0%
0%
0%
0%
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
with
INDEPENDENT AUDITORS' REPORT THEREON
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................
3
Statementsof Activities.....................................................................................................
4
Statementsof Cash Flows..................................................................................................
5
Notes to Financial Statements.......................................................................................6-15
KMJCorbin & Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Newport Beach & Company
We have audited the accompanying financial statements of Newport Beach & Company (a non-
profit organization) (the "Organization"), which comprise the statements of financial position as
of June 30, 2020 and 2019, and the related statements of activities and cash flows for the years
then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audits 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 714 380 6565 f 714 380 6566 18201 Von Karman Avenue Suite 450 Irvine CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Emphasis of Matter - Related Party Transactions
As discussed in Note 8 to the financial statements, Newport Beach & Company has significant
transactions with a related non-profit organization and the Organization derives substantial support
and revenue from that related non-profit organization. Our opinion is not modified with respect to
this matter.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Newport Beach & Company as of June 30, 2020 and 2019, and the changes
in its net assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
KMJ Corbin & Company LLP
Irvine, California
September 30, 2020
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2020 2019
ASSETS
Current assets:
Cash $ 72,690 $ 54,544
Accounts receivable 43,753 50,145
Related -party receivables, net - 107,346
Prepaid expenses and other current assets 32,672 39,845
Total current assets 149,115 251,880
Property and equipment, net 64,843 91,756
$ 213,958 $ 343.636
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 6,171 $ 86,525
Related -party payables, net 32,739 -
Accrued expenses 72,522 21,776
Accrued payroll and related expenses 51,661 198,446
Current portion of deferred compensation 20,000 20,000
Total current liabilities 183,093 326,747
Deferred compensation, net of current portion - 20,000
Deferred rent, net of current portion 100,891 97,590
Total liabilities 283,984 444,337
Commitments and contingencies
Net assets without donor restrictions (70,026) (100,701)
$ 213,958 $ 343.636
See accompanying notes to financial statements
3
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2020 2019
Support and revenues:
Service fees from related party $ 2,129,382 $ 2,573,081
Community marketing income 309,391 333,572
Total support and revenues 2,438,773 2,906,653
Expenses:
Marketing 169,364 359,410
Salaries and benefits 1,588,115 1,770,592
Other 615,560 739,796
Depreciation 35,059 36,415
Total expenses 2,408,098 2,906,213
Increase in net assets without donor restrictions 309675 440
Net assets, beginning of year (100,701) (101,141)
Net assets, end of year $ (70,026) $ (100,701)
See accompanying notes to financial statements
4
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2020
2019
Cash flows from operating activities:
Change in net assets without donor restrictions
$ 30,675
$ 440
Adjustments to reconcile change in net assets
without donor restrictions to net cash provided by
operating activities:
Depreciation
35,059
36,415
Loss on disposal of equipment
1,675
-
Changes in operating assets and liabilities:
Accounts receivable
6,392
(6,085)
Related -party receivables/payables, net
140,085
21,076
Prepaid expenses and other current assets
7,173
(7,687)
Accounts payable
(80,354)
4,738
Accrued expenses
50,746
7,059
Accrued payroll and related expenses
(146,785)
57,086
Deferred compensation
(20,000)
(20,000)
Deferred rent
3,301
_(16,219)
Net cash provided by operating activities
27,967
76,823
Cash flows used in investing activities:
Purchases of property and equipment
(9,821)
(35,027)
Net increase in cash
18,146
41,796
Cash at beginning of year
54,544
12,748
Cash at end of year
$ 72,690
$ 54,544
See accompanying notes to financial statements
5
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 1— ORGANIZATION
Nature of Operations
Newport Beach & Company (the "Organization") is a non-profit organization formed under the
laws of the State of California in 2013. The Organization specializes in marketing and promotion
services related to enhancing the economic development for the City of Newport Beach (the
"City"). The Organization currently has agreements with the City to manage its public access
television channel and to provide services to the Newport Beach Restaurant Association Business
Improvement District, and the Balboa Village Merchants Association. By embracing a variety of
neighborhoods, businesses and individual unique voices into a complementary story, the
Organization seeks to strengthen all of its partners, drive new revenue to the City and enhance the
City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City provides management and
consulting services in support of NBTV. Such services include production, administrative,
and sponsorship services. This agreement expires on January 31, 2021.
Newport Beach Restaurant Association Business Improvement District ("NBRA BID")
The agreement between the Organization and the City, which expires on June 30, 2021,
provides marketing planning and programming, public and media relations, research and
measurement, membership and community events services to the City related to the NBRA
BID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions —Net assets that are not subject to donor -imposed stipulations. These
assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
to
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
With donor restrictions - Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
As of and for the years ended June 30, 2020 and 2019, the Organization had no net assets with donor
restrictions.
Li uidi
In December 2019, a novel strain of coronavirus disease ("COVID-19") was first reported in
Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization
declared COVID-19 a global pandemic. The extent of COVID-19's effect on the Organization's
operational and financial performance will depend on future developments, including the duration,
spread and intensity of the pandemic, all of which are uncertain and difficult to predict considered
the rapidly evolving landscape. The Organization is currently analyzing the potential impacts to
all of its business segments. At this time, it is not possible to determine the magnitude of the overall
impact of COVID-19 on the Organization. However, it could have a material adverse effect on the
Organization's financial condition, liquidity, results of operations, and cash flows. In the short
term, one of the impacts of the pandemic is that the Organization's revenues have declined, but
the Organization cannot predict whether this decline is temporary or not. During the year ended
June 30, 2020, the Organization took certain cost cutting measures including reducing
discretionary marketing and other expenses, and reducing payroll through pay cuts, furloughs, and
reduction in its workforce. The Organization believes these measures, along with its existing cash,
will be sufficient to cover its cash flow requirements for at least the next twelve months from the
date of issuance of these financial statements (see Note 3). However, there can be no assurance
that the Organization will not use its existing capital resources sooner than currently expected.
7
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Reclassifications
Certain amounts reported in the prior period have been reclassified to conform to the current
period's presentation. There was no effect on net assets or change in net assets as previously
reported.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the sufficiency of its cash resources to fund operations
for the next twelve months, the collectability of receivables, the recoverability of long-lived assets
and the allocation of expenses to program activities and general and administrative. Actual results
may differ from those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation ("FDIC") up to $250,000 per institution. At June 30, 2020, the Organization had no
uninsured balances. The Organization periodically reviews the quality of the financial institutions
it has deposits with to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. At June 30, 2020 and 2019, the Organization considers its accounts
receivable to be fully collectible and accordingly did not record an allowance for doubtful
accounts. As of June 30, 2020 and 2019, two customers accounted for approximately 95% and
90% respectively, of the Organization's total accounts receivable balance.
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Deferred Compensation
Deferred compensation represents a commitment to make annual $20,000 annuity payments
through 2021 to a member of the Organization's management. Payments due within one year have
been classified as current.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2020 and 2019, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
0
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
During the years ended June 30, 2020 and 2019, the Organization did not have significant
contributed materials and services.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2020 and 2019,
the Organization had no unrelated business income. The Organization annually evaluates tax
positions as part of the preparation of its exempt tax return. This process includes an analysis of
whether tax positions the Organization takes with regard to a particular item of income or
deduction would meet the definition of an uncertain tax position under current accounting
guidance. The Organization believes its tax positions are appropriate based on current facts and
circumstances. The Organization's policy is to recognize interest accrued related to unrecognized
tax benefits in interest expense and penalties in operating expenses. At June 30, 2020 and 2019,
the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to income tax examinations by tax authorities for years
before 2016.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards
Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09
provides additional guidance to clarify the principles for recognizing revenue. The standard and
subsequent amendments are intended to develop a common revenue standard for removing
inconsistencies and weaknesses, improve comparability, provide more useful information to users
through improved disclosure requirements, and simplify the preparation of financial statements.
10
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
ASU No. 2014-09, as amended, is effective for annual reporting periods beginning after December
15, 2019. ASU No. 2014-09 may be adopted either by restating all years presented in the financial
statements or by recording the impact of adoption as an adjustment to net assets at the beginning
of the year of adoption. The Organization has not yet selected a transition method nor determined
the impact the adoption of ASU No. 2014-09, as amended, will have on its financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the lease
rights and obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. ASU 2016-02, as
amended, is effective for reporting periods beginning after December 15, 2021, with early adoption
permitted. While still evaluating this update, the Organization expects the adoption of this update
to have a material effect on its financial condition due to the recognition of the lease rights and
obligations as assets and liabilities. The Organization does not expect this update to have a material
effect on its results of operations and cash flows.
In June 2018, the FASB issued ASU No. 2018-08, Not for -Profit Entities (Topic 958): Clarifying
the Scope and the Accounting Guidance for Contributions Received and Contributions Made. This
standard provides a more robust framework for determining whether a transaction should be
accounted for as a contribution or as an exchange as well as provides additional guidance to assist
in determining whether a contribution is conditional and to better distinguish a donor -imposed
condition from a donor -imposed restriction. The Organization implemented this standard during
the year ended June 30, 2020 and such did not have a material impact on the Organization's
financial statements.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2020, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
The Organization has $116,443 of financial assets available within one year of the statement of
financial position date to meet cash needs for general expenditures consisting of cash of $72,690,
and accounts receivable of $43,753. None of the financial assets are subject to donor or other
contractual restrictions that make them unavailable for general expenditures within one year of the
statement of financial position. The Organization has a policy to structure its financial assets to be
available as its general expenditures, liabilities, and other obligations come due.
11
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 3 — LIQUIDITY AND AVAILABILITY, continued
Funding for the Organization is dependent on funding received from a related parry (see Note 8)
and revenue generated through marketing efforts. As a result, the Organization closely monitors
the monthly projected and received revenue to determine if any changes need to be made to
budgeted annual expenditures.
As discussed in Note 2, in response to COVID-19, the Organization has performed an analysis to
determine whether it will have sufficient cash to fund operations for the next twelve months. Based
on budgeting for necessary expenses and obligations due along with minimal service fee revenues
as a result of the impact of COVID-19 on hotel stays, the Organization has concluded that it will
have sufficient cash to fund operations for at least twelve months from the date of issuance of these
financial statements.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2020 2019
Leasehold improvements $ 79,990 $ 79,990
Computer equipment 126,456 120,910
Office furniture and fixtures 81,409 79,214
287,855 280,114
Less accumulated depreciation and amortization (223,012) (188,358)
$ 64,843 $ 91,756
12
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2020 and 2019 is as follows:
Salaries and benefits:
Salaries
Payroll taxes and employee benefits
Total salaries and benefits
Other expense:
Marketing
Office lease
Repairs and maintenance
Insurance
Office supplies
Equipment and equipment rental
Postage and fees
Meeting and education
Professional fees and services
Depreciation
Bad debt
Travel and related
Total functional expenses
2020
Program General and 2019
Activities Administrative Total Total
(Summarized)
$ 951,243 $
258,869
$ 1,210,112
$ 1,414,325
266,741
111,262
378,003
356,267
1,217,984
370,131
1,588,115
1,770,592
168,017
1,347
169,364
359,410
306,953
102,318
409,271
402,675
-
30,322
30,322
30,538
-
6,944
6,944
10,707
-
16,628
16,628
25,332
15,875
33,650
49,525
52,451
2,975
2,344
5,319
4,546
13,848
30,285
44,133
84,789
-
22,639
22,639
74,414
-
35,059
35,059
36,415
-
4,888
4,888
-
7,089
18,802
25,891
54,344
$ 1.732.741 $
675.357
$ 2.408.098
$ 2.906.213
The Organization incurred expenses related to program activities totaling approximately
$1,939,000 for the year ended June 30, 2019.
NOTE 6 - COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022 and rent, as amended, is payable between $6,922 and
$32,905 per month. As a result of the fourth amendment to this lease, the Organization is a party
to the lease originally entered into by Visit Newport Beach Inc. ("VNB"), a related party. Under
the terms of this lease, each assignee shall be deemed to assume all lease obligations, and as a
result, the Organization may be liable for future rent payments. The facility lease contains a five-
year extension option at the end of the lease term.
13
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 6 — COMMITMENTS AND CONTINGENCIES, continued
Total rent expense incurred by the Organization under its operating lease was approximately
$409,000 and $403,000 for the years ended June 30, 2020 and 2019, respectively, and is included
in other expenses. Such amounts are net of the amounts paid by VNB pursuant to the Agreement
discussed in Note 8.
Future minimum payments due on its allocated portion of the non -cancelable facility lease
commitment in excess of one year are as follows:
Years Ending
June 30,
2021
$ 462,000
2022
480,000
2023
113,000
$ 1,055,000
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified parry, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. In connection with its facility lease, the Organization has
indemnified its lessor for certain claims arising from the use of the facilities. The duration of the
guarantees and indemnities varies, and is generally tied to the life of the agreement. These
guarantees and indemnities do not provide for any limitation of the maximum potential future
payments the Organization could be obligated to make. Historically, the Organization has not
been obligated nor incurred any payments for these obligations and, therefore, no liabilities have
been recorded for these indemnities and guarantees in the accompanying statements of financial
position.
NOTE 7 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provided
matching contributions based upon employees' voluntary contributions and the Organization's
contributions. Effective March 31, 2020, the Organization amended the 401(k) retirement plan to
exclude employer matching contributions. The total expense recorded by the Organization during
the years ended June 30, 2020 and 2019 was approximately $70,000 and $82,000, respectively,
which is recorded in salaries and benefits expenses in the accompanying statements of activities.
14
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 8 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2020 and 2019, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, VNB, initiates, sponsors, promotes
and carries out plans, policies and activities to attract conferences and visitors to the City. VNB
was the driving force behind the formation of the Organization. Pursuant to an Agreement for
Services ("Agreement") dated April 1, 2013, the Organization was appointed by VNB as an
exclusive provider of services that VNB shall need to carry out its mission and obligations to the
City. In consideration for these services, VNB agreed to pay monthly fees totaling $108,000 and
$93,000 for the years ended June 30, 2020 and 2019, respectively. VNB has also agreed to
reimburse the Organization for all reasonable expenses incurred by it in carrying out its duties to
VNB, including rent and related facility costs, payroll and related benefits, and other direct
marketing costs. For the years ended June 30, 2020 and 2019, the Organization billed $2,021,382
and $2,480,081, respectively, to VNB for these fees and costs, which are recorded as service fees
from related party in the accompanying statements of activities. The Agreement expires in March
2021 with an option for a five-year renewal.
As of June 30, 2020 and 2019, the Organization has net related -party receivables (payables) of
($32,739) and $107,346, respectively, in the accompanying statements of financial position. These
amounts do not bear interest, are not collateralized and have no stated repayment terms.
15
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2020
with
INDEPENDENT AUDITORS' REPORT THEREON
COrbin g�KMJ Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc. (the "Organization") complied with the provisions in
Section 4 of the Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services (the "Agreement") regarding the
attached 2020 Expenditures Report, summarizing the expenditures of funds received pursuant to
the Agreement during the period July 1, 2019 to June 30, 2020. The Organization's management
is responsible for its assertion. Our responsibility is to express an opinion on management's
assertion about the Organization's compliance with the specified requirements based on our
examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion
about compliance with the specified requirements is fairly stated, in all material respects. The
nature, timing, and extent of the procedures selected depend on our judgment, including an
assessment of the risks of material misstatement of management's assertion, whether due to
fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide
a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Organization's compliance with
the specified requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the attached 2020 Expenditures Report for
the year ended June 30, 2020 is fairly stated, in all material respects.
This report is intended solely for the information and use of Visit Newport Beach, Inc. and the
City of Newport Beach and is not intended to be and should not be used by anyone other than
these specified parties.
KMJ Corbin & Company LLP
Irvine, California
September 30, 2020
p 714 380 6565 f 714 380 6566 18201 Von Karman Avenue Suite 450 Irvine CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
vISiG+YYT Qrt
A4,iKE A CH INC.
Management Statement Regarding Compliance With Certain Provisions of the Agreement Between
the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and
Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are responsible for
complying with the provisions of Section 4 of the Agreement Between the City of Newport Beach and Visit
Newport Beach Inc. (collectively, the "Parties") for Tourism Promotion, Branding, and Marketing Services
(the "Agreement") in that funds received by the Organization pursuant to this Agreement were expended in
accordance with this Agreement. We are responsible for establishing and maintaining effective internal
controls over compliance with the provisions of Section 4 of the Agreement. We have performed an
evaluation of the Organization's compliance with the provisions of Section 4 of the Agreement regarding
funds expended during the year ended June 30, 2020, as summarized in the attached 2020 Expenditures
Report. Based on this evaluation, we assert that the Organization was in compliance with the provisions of
Section 4 of the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise a program
to market and promote the Newport Beach brand and to promote tourism in, and serve the needs of, visitors
to Newport Beach as well as increase the amount of TOT collected through their promotional activities
(`Services'). Subject to the foregoing sentence, the Services shall, at a minimum, include the following:
(a) the maintenance of suitable office space and the employment of competent personnel to carry out the
promotional, branding and marketing duties; (b) the preparation of brochures, publications, guides, on-line
promotions, social network efforts, and other marketing materials and information that inform prospective
tourists and visitors of the recreational activities, cultural assets, shopping and dining opportunities, night-
time stay opportunities, and natural beauty of Newport Beach; (c) the dissemination of information
described in this section by way of the media, direct mail, handouts, social networking, websites, smart
phone applications, or other means of distribution; and (d) the development and implementation of specific
marketing programs designed to increase awareness of the Newport Beach brand and to increase business
and visitor trade in Newport Beach; and (e) any additional Services when proposed by the City which are
consistent with the promotion of tourism and the Newport Beach brand which are mutually agreeable and
acceptable to the Parties."
Visit Newport Beach Inc.
4f(A�
Gary Sherwin
Presi tIC O
LiYy'�4b n
VP F nance
VISIT NEWPORT BEACH, INC.
2020 Expenditures Report
July 1, 2019 -
June 30, 2020
2020 Expenses
Salary and Wages
61010 - Salaries and Wages
$ 50,768.00
61030 - Payroll Tax Expenses
5,447
61040 -Accrued PTO Expense
Total Salary and Wages
56,215
Benefits
61125 - Vision Insurance
-
61140 - Retirement Plan (401k)
3,089
61160 - Employee Engagement Benefit
Total Benefits
3,089
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
438
64115 - Office Equipment (non-deprec)
-
64120 - Equipment Repairs & Maintenance
-
64125 - Computer Software (non-deprec)
7,739
64130 - Voice and Data - Office
787
64145 - Shipping Charges
256
64150 - Bank Fees
695
64160 - Membership Dues
69,850
64170 - Team Meetings
2,218
64175 - Governance Meeting Expenses
-
64610 - Client Gifts
334
Total Operating Expenses
82,317
Insurance
63100 - General Liability Insurance
1,070
63300 - Board of Directors Insurance
3,594
Total Insurance
4,664
Professional Fees
64205 - Payroll Processing Service
1,868
64207 - Bloggers
6,100
64201-Audit Fees
8,500
64202 - Tax Preparation Fees
1,700
Total Professional Fees
18,168
Travel Expenses
65100 - Airfare
-
65200 - Accommodations
-
65300 - Meals
-
65400 - Transportation Costs
-
65405 - Mileage ($0.535/mile 2017)
-
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
105,149
Advertising Expenses
66101 - Advertising - Purchased
535,186
66102 - Advertising - Local Events
31,007
66104 - Advertising Tracking Media
26,500
66123 - Promotional Client Gifts
-
66202 -Ad Production
-
66203 - Creative Design/Development
107,545
66205 - Photography/Video Production
2,082
66212 - Community Sponsorships
150,000
Total Advertising Expenses
852,320
Marketing Expenses
Community Relations
67103 - Community Partner Events
50
67101- Research
128,865
67102 - Christmas Boat Parade
124,207
67105 - Awards
-
67107 - Promotional Items
-
67108 - Company -Sponsored Events
-
67109 - Hospitality Training
129
Total Community Relations
253,251
Marketing Collateral
67301- Inspiration Guide
10
67302 - Maps
-
67311- Collateral Production Expenses
-
67312 - Collateral Distribution
26,881
Total Marketing Collateral
26,891
Digital Marketing
67501- Social Media
-
67502 - Website Maintenance
138,123
67503 - Online Search Advertising
63,101
67504 - Digital Advertising
11,887
67506 - Mobile Application
1,470
67508 - Website Redesign Expenses
-
67511- Digital Lifestyle Channel Production
33,295
66211- CRM Maintenance
29,559
Total Digital Marketing
277,435
Communications/Public Relations
67601- Media Services
14,157
67602 - Media FAM Tours
33,823
67605 - Media Special Programs
226,742
67607 - Media Relations
9,956
67608 - Digital Assets/Media Library
9,650
Total Communications/Public Relations
294,328
Total Marketing Expenses
851,905
International Marketing Initiatives
67401- International Brand Awareness Fees
151,632
67402 - International TTI FAM Tours
14,068
67403 - International Promotions
27,457
67404 - International Trade Shows
28,140
67405 - International Airfare
15,729
67406 - International Accommodations
14,567
67407 - International Meals
1,497
67408 - International Transportation Cost
1,961
67409 - International Other Travel Cost
633
67410 - International Business Meals/Entertainment
580
67411- International Promotional Items
-
67412 - International Brand Events
255,301
67413 - International Sales Missions
4,505
Total International Marketing Initiatives
516,070
NB&Company Fees
68001- NB&Co Fees
2,021,382
Total NB&Company Fees
2,021,382
Total Expenses 4,406,130
Other Expenditures:
Fixed asset additions capitalized -
Website development costs capitalized 12,510
Change in other prepaid expenses and current liabilities, net 10,457
22,967
$ 4,429,097
Included in this account are expenditures for or contributions to special events and not -far -profit organizations in Newport Beach as
follows:
Vendor Event Amount
City of Newport Beach Arts Sponsorship 150,000
$ 150,000
Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries/Benefits $ 1,543,198
Marketing Expenses 137,677
G&A Overhead 340,507
$ 2,021,382
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION
For The Years Ended June 30, 2020 and 2019
with
INDEPENDENT AUDITORS' REPORT THEREON
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statements of Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-19
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source ................................... 20
Schedule Il — Statement of Activities by Funding Source ............................................... 21
KMJCorbin g� Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
Report on the Financial Statements
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-profit
organization) (the "Organization"), which comprise the statements of financial position as of June
30, 2020 and 2019, and the related statements of activities and cash flows for the years then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audits 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 714 380 6565 f 714 380 6566 18201 Von Karman Avenue Suite 450 Irvine CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Visit Newport Beach Inc. as of June 30, 2020 and 2019, and the changes
in its net assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter - Related Party Transactions
As discussed in Note 9 to the financial statements, Visit Newport Beach Inc. has significant
transactions with a related non-profit organization. Our opinion is not modified with respect to this
matter.
Other Matter - Supplemental Information
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as
a whole. The supplemental information contained in Schedules I and II on pages 20-21 is presented
for purposes of additional analysis and is not a required part of the 2020 financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the 2020 financial statements. The
information has been subjected to the auditing procedures applied in the audit of the 2020 financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the 2020 financial statements
or the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the 2020 financial statements as a whole.
V'MJ- WA-W� "n LI-P
KMJ Corbin & Company LLP
Irvine, California
September 30, 2020
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$ 1,698,312 $
1,588,034
Short-term investments
2,606,273
1,295,721
Accounts receivable
145,623
-
Related -party receivables, net
32,739
-
Prepaid expenses and other current assets
197,685
317,496
Total current assets
4,680,632
3,201,251
Property and equipment, net
31,767
37,704
Website development costs, net
96,628
146,939
Deposits and other assets
9,619
9,619
$ 4,818,646 $
3,395.513
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 91,351 $ 102,074
Related -party payables, net - 107,346
Accrued expenses 33,340 21,960
Accrued payroll and related expenses 27,510 224,969
Group booking incentive reserve 31,300 98,206
Total current liabilities 183,501 554,555
Deferred rent, net of current portion 22,123 18,350
Loan payable 150,000 -
Total liabilities 355,624 572,905
Commitments and contingencies
Net assets without donor restrictions 4,463,022 2,822,608
$ 4,818,646 $ 3.395.513
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2020 2019
Support and revenues:
Service fee revenues
$ 9,412,997
$ 9,875,230
Interest income
25,118
46,739
Other income
10,000
1,362
Total support and revenues
9,448,115
9,923,331
Expenses:
Marketing (including $2,129,382 and $2,573,081
to Newport Beach & Company during 2020
and 2019, respectively — see Note 9)
5,836,561
7,585,263
Salaries and benefits
1,392,718
1,566,163
Other
470,634
456,219
Depreciation and amortization
107,788
84,527
Total expenses
7,807,701
9,692,172
Change in net assets without donor restrictions
1,640,414
231,159
Net assets, beginning of year
2,822,608
2,591,449
Net assets, end of year
$ 4,463,022
$ 2.822.608
See accompanying notes to financial statements
4
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2020
2019
Cash flows from operating activities:
Change in net assets without donor restrictions
$ 1,640,414
$ 231,159
Adjustments to reconcile change in net assets without
donor restrictions to net cash provided by operating
activities:
Depreciation and amortization
107,788
84,527
Accrued interest income
22,639
35,355
Changes in operating assets and liabilities:
Accounts receivable
(145,623)
58,115
Related -party receivables/payables, net
(140,085)
(21,076)
Prepaid expenses and other current assets
119,811
13,601
Accounts payable
(10,723)
(86,581)
Accrued expenses
11,380
(72)
Accrued payroll and related expenses
(197,459)
109,700
Group booking incentive reserve
(66,906)
(10,444)
Deferred rent
3,773
6,214
Net cash provided by operating activities
1,345,009
420,498
Cash flows from investing activities:
Purchases of investments (4,756,191) (1,243,373)
Proceeds from sales/maturities of investments 3,423,000 1,800,000
Website development costs (39,735) (98,998)
Purchases of property and equipment (11,805) (33,445)
Net cash (used in) provided by investing activities (1,384,731) 424,184
Cash flows provided by financing activities:
Proceeds from loan 150,000 -
Net increase in cash and cash equivalents 110,278 844,682
Cash and cash equivalents at beginning of year 1,588,034 743,352
Cash and cash equivalents at end of year $ 1,698,312 $ 1.588.034
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 1— ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the laws
of the State of California.
Transient Occupancy Tax("TOT")
The Organization currently has an agreement ("TOT Agreement") with the City of Newport Beach
(the "City") through December 31, 2024 to promote tourism and serve the needs of visitors to the
City. Under the terms of the TOT Agreement, the Organization is responsible to develop, plan,
carry out and supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to the City as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized as revenue when received. Adjustments to
monthly revenues paid during the year ended June 30, 2020 have been recorded as accounts
receivable as of June 30, 2020, comprising 38% of the accounts receivable.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease the
percentage of TOT paid to the Organization) as part of its once -annual budget adoption process
for any reason after notice to the Organization and an opportunity for the Organization to formally
comment on the adjustment. For the years ended June 30, 2020 and 2019, the Organization
received approximately 55% of its service fee revenues from the City through the TOT. The City
has the right to terminate the TOT Agreement, without cause, by giving the Organization 365 days'
written notice of its intention to terminate. Should the City reduce or stop its funding to the
Organization due to the Organization's default or termination of the Agreement, the Organization's
operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, and expires on January 31, 2024, pursuant to the Management District Plan, as amended
(the "Plan"). The NBTBID is funded by assessments levied on participating lodging businesses
within a specified district. The assessments are restricted for use for sales promotion and
marketing programs to market the City as a tourist, meeting and event destination as outlined in
the Plan. Either party may terminate this agreement by providing the other party ninety calendar
days' written notice prior to the effective date of termination. As the Organization is not entitled
to
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 1— ORGANIZATION, continued
to its share of the assessments collected until paid by the City, amounts are recognized as revenue
when received. For the years ended June 30, 2020 and 2019, the Organization received
approximately 45% of its service fee revenues from the City through TBID assessments.
Adjustments to monthly revenues paid during the year ended June 30, 2020 have been recorded as
accounts receivable as of June 30, 2020, comprising 62% of the accounts receivable.
As of June 30, 2020 and 2019, the NBTBID is represented by nine (9) hotels within the City of
Newport Beach which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the
receipts annually for the collection of the assessments and disbursements of the NBTBID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions — Net assets that are not subject to donor -imposed stipulations.
These assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions - Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
As of and for the years ended June 30, 2020 and 2019, the Organization had no net assets with
donor restrictions.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
7
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Li uidi
In December 2019, a novel strain of coronavirus disease ("COVID-19") was first reported in
Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization
declared COVID-19 a global pandemic. The extent of COVID-19's effect on the Organization's
operational and financial performance will depend on future developments, including the duration,
spread and intensity of the pandemic, all of which are uncertain and difficult to predict considered
the rapidly evolving landscape. The Organization is currently analyzing the potential impacts to
all of its business segments. At this time, it is not possible to determine the magnitude of the overall
impact of COVID-19 on the Organization. However, it could have a material adverse effect on the
Organization's financial condition, liquidity, results of operations, and cash flows. In the short
term, one of the impacts of the pandemic is that the Organization's revenues have declined, but
the Organization cannot predict whether this decline is temporary or not. During the year ended
June 30, 2020, the Organization took certain cost cutting measures including reducing
discretionary marketing and other expenses, and reducing payroll through pay cuts, furloughs, and
reduction in its workforce. The Organization believes these measures, along with its existing cash
and cash equivalents and investments, will be sufficient to cover its cash flow requirements for at
least the next twelve months from the date of issuance of these financial statements (see Note 3).
However, there can be no assurance that the Organization will not use its existing capital resources
sooner than currently expected.
Reclassifications
Certain amounts reported in the prior period have been reclassified to conform to the current
period's presentation. There was no effect on net assets or change in net assets as previously
reported.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the sufficiency of its cash and investment resources to
fund operations for the next twelve months, the collectability of receivables, the recoverability of
long-lived assets, fair value of investments and the allocation of expenses to program activities
and general and administrative. Actual results may differ from those estimates.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash and cash
equivalent balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. At June 30, 2020,
the Organization had approximately $1,472,000 of uninsured cash and cash equivalent balances.
The Organization periodically reviews the quality of the financial institutions it has deposits with
to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. At June 30, 2020, the Organization considered its accounts receivable to be
fully collectible and accordingly did not record an allowance for doubtful accounts.
As of June 30, 2020, one customer accounted for 100% of the Organization's total accounts
receivable balance.
Investments and Fair Value Measurements
Investments and cash equivalents consist of U.S. Treasury Bills which are carried at amortized
cost, which approximates fair value.
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal market,
the most advantageous market for the asset or liability, in an orderly transaction between market
participants on the measurement date. Accounting guidance establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs in priority that
may be used to measure fair value:
0
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Level 1—Quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
The fair value of the Organization's U.S. Treasury Bills are based partially upon quoted prices in
markets that are not active or inputs which are observable, either directly or indirectly, for
substantially the full term of the assets. These instruments have been classified within Level 2 of
the valuation hierarchy.
At June 30, 2020, the Organization had approximately $2,606,000 of uninsured investment
balances. The Organization periodically reviews the quality of the financial institution holding the
investments to minimize risk of loss.
As of June 30, 2020, the Organization's investments measured at fair value on a recurring basis
were as follows:
June 30. 2020
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Short-term investments:
U.S. Treasury Bills $ - $ 2.606.273 $ -
As of June 30, 2019, the Organization's investments measured at fair value on a recurring basis
were as follows:
June 30. 2019
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Cash equivalents:
U.S. Treasury Bills $ - $ 389,635
Short-term investments:
U.S. Treasury Bills - 1,295,721
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Website Development Costs
The Organization accounts for the costs of developing its mobile apps and websites by capitalizing
the costs during the application development stage when it is probable that the project will be
completed and the property will be used to perform the function intended. Website development
costs are amortized on a straight-line basis over their estimated useful lives when completed, which
are typically the earlier of approximately three years or term based on estimated disposal date. The
recoverability of intangible assets is evaluated periodically, taking into account events or
circumstances that warrant revised estimates of useful lives or that indicate that impairment exists.
For the years ended June 30, 2020 and 2019, the Organization capitalized website development
costs of $39,735 and $98,998, respectively.
For the years ended June 30, 2020 and 2019, the Organization recorded amortization expense on
website development costs totaling $90,046 and $56,025, respectively.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2020 and 2019, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Group Booking Incentive
The Organization has established an incentive program for businesses by paying for certain costs
of conferences and group meetings held in Newport Beach hotels in order to attract businesses and
groups to the City. Costs are considered incurred upon the reservation of the hotel for future
meetings. As of June 30, 2020 and 2019, group booking accruals were $31,300 and $98,206,
respectively.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
financial statements at their estimated fair market values at date of receipt. Contributions of
services are recognized if the services received create or enhance nonfinancial assets or require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their value.
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other local
businesses involved in the tourism industry in Newport Beach. All businesses visited are also
sponsors of the Organization. Many of the Organization's sponsors contribute materials, such as
meals and rooms, in connection with this program. During the years ended June 30, 2020 and
2019, the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
contributions as they do not meet the required criteria.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2020 and 2019,
the Organization had no unrelated business income.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2020 and 2019, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. federal, state or local income tax examinations by
tax authorities for years before 2016.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards
Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09
provides additional guidance to clarify the principles for recognizing revenue. The standard and
subsequent amendments are intended to develop a common revenue standard for removing
inconsistencies and weaknesses, improve comparability, provide more useful information to users
through improved disclosure requirements, and simplify the preparation of financial statements.
ASU No. 2014-09, as amended, is effective for annual reporting periods beginning after December
15, 2019. ASU No. 2014-09 may be adopted either by restating all years presented in the financial
statements or by recording the impact of adoption as an adjustment to net assets at the beginning
of the year of adoption. The Organization has not yet selected a transition method nor determined
the impact the adoption of ASU No. 2014-09, as amended, will have on its financial statements.
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the lease
rights and obligations arising from lease contracts, including existing and new arrangements, to be
recognized as assets and liabilities on the statement of financial position. ASU 2016-02, as
amended, is effective for reporting periods beginning after December 15, 2021, with early adoption
permitted. While still evaluating this update, the Organization expects the adoption of this update
to have a material effect on its financial condition due to the recognition of the lease rights and
obligations as assets and liabilities. The Organization does not expect this update to have a material
effect on its results of operations and cash flows.
In June 2018, the FASB issued ASU No. 2018-08, Not -for -Profit Entities (Topic 958): Clarifying
the Scope and the Accounting Guidance for Contributions Received and Contributions Made. This
standard provides a more robust framework for determining whether a transaction should be
accounted for as a contribution or as an exchange as well as provides additional guidance to assist
in determining whether a contribution is conditional and to better distinguish a donor -imposed
condition from a donor -imposed restriction. The Organization implemented this standard during
the year ended June 30, 2020 and such did not have a material impact on the Organization's
financial statements.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2020, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto except as disclosed herein.
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2020, the Organization has $4,564,821 of financial assets available within one year of
the statement of financial position date to meet cash needs for general expenditures consisting of
cash and cash equivalents of $1,698,312, short-term investments of $2,606,273, accounts
receivable of $145,623, net related party receivables of $32,739 and other receivables of $81,874
included in prepaid expenses and other current assets in the accompanying statement of financial
position. None of the financial assets are subject to donor or other contractual restrictions that
make them unavailable for general expenditures within one year of the statement of financial
position. Prior to COVID-19, the Organization had a goal to maintain financial assets, which
consist of cash, cash equivalents and short-term investments, on hand to meet 90 days of normal
operating expenses, which are, on average, approximately $350,000 per month. The Organization
has a policy to structure its financial assets to be available as its general expenditures, liabilities,
and other obligations come due. The Organization invests cash in excess of daily requirements in
various short-term treasury instruments.
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 3 — LIQUIDITY AND AVAILABILITY, continued
Funding for the Organization is dependent on the hotel room nights booked in certain Newport
Beach hotels each year and the subsequent portion of the TOT that is allocated through the City to
the Organization and the portion of the TBID assessments that are sent to the Organization from
the TBID participants. Annual revenue fluctuates depending on annual visitors to Newport Beach.
As a result, the Organization closely monitors the monthly projected and received revenue to
determine if any change needs to be made to budgeted annual expenditures.
As discussed in Note 2, in response to COVID-19, the Organization has performed an analysis to
determine whether it will have sufficient cash to fund operations for the next 12 months. Based on
budgeting for necessary expenses and obligations due along with minimal service fee revenues as
a result of the impact of COVID-19 on hotel stays, the Organization has concluded that it will have
sufficient cash to fund operations for at least 12 months from the date of issuance of these financial
statements.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2020 2019
Leasehold improvements $ 38,468 $ 38,468
Computer equipment 40,516 28,711
Office furniture and fixtures 136,812 136,812
215,796 203,991
Less accumulated depreciation and amortization (184,029) (166,287)
$ 31,767 $ 37.704
For the years ended June 30, 2020 and 2019, the Organization recorded depreciation expense on
property and equipment totaling $17,742 and $28,502, respectively.
15
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30, 2020 and 2019 is as follows:
Salaries and benefits:
Salaries
Payroll taxes and employee benefits
Total salaries and benefits
Other expense:
Marketing
Office lease
Repairs and maintenance
Insurance
Office supplies
Equipment and equipment rental
Postage and other dues and fees
Meeting and education
Professional fees and services
Bad debt
Depreciation and amortization
Travel and related
Total functional expenses
2020
Program General and 2019
Activities Administrative Total Total
(Summarized)
$ 924,603 $
149,990
$ 1,074,593
$ 1,239,012
251,436
66,689
318,125
327,151
1,176,039
216,679
1,392,718
1,566,163
5,123,288
713,273
5,836,561
7,585,263
87,606
29,202
116,808
116,417
590
24,024
24,614
21,049
1,074
8,352
9,426
19,810
-
10,869
10,869
20,729
12,968
21,550
34,518
42,183
77,218
38,635
115,853
113,327
3,928
42,393
46,321
38,662
31,597
27,863
59,460
52,342
-
31,500
31,500
-
21,099
86,689
107,788
84,527
18,551
2,714
21,265
31,700
$ 6.553.958 $ 1.253.743 $ 7.807.701 $ 9.692.172
The Organization incurred expenses related to program activities totaling approximately
$8,242,000 for the year ended June 30, 2019.
NOTE 6 - LOAN AGREEMENT
On June 3, 2020, the Company entered into an Economic Injury Disaster Loan (the "Loan")
administered by the U.S. Small Business Administration. The loan has an original principal
balance of $150,000, bears interest at 2.75% per annum and matures on June 3, 2050. The loan
requires monthly payments beginning on June 2021. Payments are first applied to interest accrued
and then principal. The amount borrowed under the Loan is guaranteed by substantially all of the
Organization's assets. The Organization will use all the proceeds of this Loan solely as working
capital to alleviate economic injury caused by COVID-19. The Loan contains customary events of
default, and the occurrence of an event of default may result in a claim for the immediate
repayment of all amounts outstanding under the Loan.
16
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 6 — LOAN AGREEMENT, continued
Future minimum payments under the Organization's loan agreement are as follows:
Years Ending
June 30,
2021
2022
2023
2024
2025
Thereafter
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
83
3,615
3,715
3,819
138.768
$ 150,000
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022, and rent, as amended, is payable between $8,359 and
$12,016 per month. As a result of the fourth amendment to this lease, the Organization assigned
its rights to Newport Beach & Company ("NB & Co."), a related party. Under the terms of this
lease, this assignment does not relieve the Organization of its lease obligations. As a result, the
Organization continues to be liable for future rent payments. The facility lease contains a five-year
extension option at the end of the lease term.
Total rent expense incurred by the Organization under operating leases was approximately
$117,000 and $116,000 for the years ended June 30, 2020 and 2019, respectively, and is included
in other expenses. Such amounts are net of the amounts paid by the related party pursuant to the
Agreement disclosed in Note 9.
Future minimum payments due on the Organization's allocated portion of the non -cancelable
facility lease commitment in excess of one year are as follows:
Years Ending
June 30,
2021
$ 128,000
2022
133,000
2023
31,000
$ 292,000
17
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 7 — COMMITMENTS AND CONTINGENCIES, continued
Commitments
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $287 to $5,000 per month over various
terms with 24 months or less remaining at June 30, 2020 and one year or less remaining at June
30, 2019. From these commitments, the Organization incurred approximately $504,000 and
$350,000 of expenses for the year ended June 30, 2020 and 2019, respectively, which are recorded
in marketing expenses in the accompanying statement of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on June 1,
2014 through December 31, 2024, to the City to be spent on programs or activities that benefit the
public, which is recorded in marketing expenses for the years ended June 30, 2020 and 2019. Due
to the rights of termination per the agreement, these commitments are considered due each June
and December.
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified parry, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. Pursuant to the TOT Agreement, the Organization also indemnifies
the City and all of its related boards, councils, officers, employees, and volunteers from claims
related to the conduct of the Organization or any of its officers, employees, or associated
individuals. In connection with its facility lease, the Organization has indemnified its lessor for
certain claims arising from the use of the facilities. The duration of the guarantees and indemnities
varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not
provide for any limitation of the maximum potential future payments the Organization could be
obligated to make. Historically, the Organization has not been obligated nor incurred any
payments for these obligations and, therefore, no liabilities have been recorded for these
indemnities and guarantees in the accompanying statements of financial position.
NOTE 8 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provided
matching contributions based upon employees' voluntary contributions and the Organization's
contributions. Effective March 31, 2020, the Organization amended the 401(k) retirement plan to
exclude employer matching contributions. The total expense recorded by the Organization during
the years ended June 30, 2020 and 2019 was approximately $73,000 and $75,000, respectively,
and is included in salaries and benefit expenses in the accompanying statements of activities.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2020 and 2019
NOTE 9 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2020 and 2019, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, NB & Co., specializes in marketing
and promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB & Co.
as an exclusive provider of services that the Organization shall need to carry out its mission and
obligations to the City. In consideration for these services, the Organization agreed to pay NB &
Co. annual fees totaling $108,000 and $93,000 for the years ended June 30, 2020 and 2019,
respectively. The Organization has also agreed to reimburse NB & Co. for all reasonable expenses
incurred by it in carrying out its duties to the Organization, including rent and related facility costs,
payroll and related benefits, and other direct marketing costs. For the years ended June 30, 2020
and 2019, the Organization incurred $2,021,382 and $2,480,081, respectively, from NB & Co. for
these costs, which are recorded in marketing expenses in the accompanying statements of
activities. NB & Co.'s costs for the years ended June 30, 2020 and 2019 were broken out as
follows: $140,093 and $419,774, respectively, of direct marketing, $1,556,505 and $1,654,487,
respectively, of salaries and benefits, and $324,784 and $405,820, respectively, of other (including
rent and related facility costs). The Agreement expires in March 2021 and with an option for a
five-year renewal.
As of June 30, 2020 and 2019, the Organization has net related -party receivables (payables) of
$32,739 and ($107,346), respectively, in the accompanying statements of financial position. These
amounts do not bear interest, are not collateralized, and have no stated repayment terms.
19
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2020
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable
Related -party receivables, net
Prepaid expenses and other
current assets
Total current assets
Property and equipment, net
Website development costs, net
Deposits and other assets
Intercompany
Current liabilities:
Accounts payable
Accrued expenses
Accrued payroll and related
expenses
Group booking incentive reserve
Total current liabilities
Deferred rent, net of current portion
Loan payable
Total liabilities
Net assets without donor restrictions
TOT* TBID
$ 835,011
$ 863,301
1,690,537
915,736
55,941
89,682
33,635
(896)
47,632
150,053
2,662,756
2,017,876
18,075
13,692
70,084
26,544
9,619
-
794
(794)
$ 2.761.328
$ 2.057.318
$ 75,006
8,500
-
-
$ 16,345
24,840
27,510
31,300
83,506
99,995
-
22,123
150,000
-
233,506
122,118
2,527,822
1,935,200
$ 2.761.328
$ 2.057.318
* Includes balances for other marketing and administrative costs.
Eliminations
Total
$ 1,698,312
2,606,273
145,623
32,739
197.685
4,680,632
31,767
96,628
9,619
$ 4.818.646
$ 91,351
33,340
27,510
31.300
183,501
22,123
150,000
355,624
4,463,022
$ 4.818.646
20
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2020
Support and revenues:
Service fee revenues
Interest income
Other income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
Other
Depreciation and amortization
Total expenses
Change in net assets without donor
restrictions
Net assets, beginning of year
Net assets, end of year
TOT* TBID
$ 5,155,728 $ 4,257,269
14,704 10,414
10,000 -
5,180,432 4,267,683
4,242,011 1,594,550
59,304 1,333,414
104,813 365,821
75.983 31.805
4,482,111 3,325,590
698,321 942,093
1,829,501 993,107
$ 2.527.822 $ 1.935.200
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 9,412,997
- 25,118
- 10,000
9,448,115
5,836,561
1,392,718
470,634
107.788
7,807,701
1,640,414
2,822,608
21
VISIT eW art
��, E A C H ins:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2020
Year To Date Year To Date
05/31/2020 05/31/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
4,207,074.52
4,124,517.07
82,557.45
Total Revenue
4,207,074.52
4,124,517.07
82,557.45
Other Income
46001 - Interest Income
1,931.20
2,055.69
(124.49)
Total Other Income
1,931.20
2,055.69
(124.49)
Total Operating Revenue
4,209,005.72
4,126,572.76
82,432.96
Expenses
Salary and Wages
61010 - Salaries and Wages
891,238.01
848,129.59
43,108.42
61015 - Bonuses and Commissions
68,403.16
99,317.73
(30,914.57)
61020 - Auto Allowance
12,655.00
14,805.00
(2,150.00)
61030 - Payroll Tax Expenses
76,327.19
72,906.45
3,420.74
Total Salary and Wages
1,048,623.36
1,035,158.77
13,464.59
Benefits
61110 - Medical Insurance
105,374.94
85,712.84
19,662.10
61115 - Benefit Administrative Fees
289.09
201.00
88.09
61120 - Dental Insurance
7,089.11
6,907.65
181.46
61125 - Vision Insurance
1,188.21
1,206.70
(18.49)
61130 - Life and Disability
15,027.40
11,210.62
3,816.78
61140 - Retirement Plan (401k)
68,797.80
68,729.26
68.54
61150 - Flexible Spending Plan
1,686.94
222.21
1,464.73
61160 - Employee Engagement Benefit
6,750.65
4,859.28
1,891.37
Total Benefits
206,204.14
179,049.56
27,154.58
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
6,523.48
11,881.62
(5,358.14)
64101 - Kitchen Supplies
3,817.68
0.00
3,817.68
64110 - Office Equipment Leases
535.18
3,153.70
(2,618.52)
64115 - Office Equipment (non-deprec)
2,328.46
3,335.07
(1,006.61)
64120 - Equipment Repairs & Maintenance
19,145.25
15,576.93
3,568.32
64125 - Computer Software (non-deprec)
9,088.00
7,036.65
2,051.35
64130 - Voice and Data - Office
4,984.37
5,325.02
(340.65)
64135 - Telephone - Mobile
7,805.28
9,236.49
(1,431.21)
64145 - Shipping Charges
3,194.06
2,892.86
301.20
64150 - Bank Fees
30.00
105.00
(75.00)
64160 - Membership Dues
41,226.68
34,982.33
6,244.35
64165 - Subscriptions
170.25
476.38
(306.13)
64170 - Team Meetings
21,934.90
12,610.98
9,323.92
64175 - Governance Meeting Expenses
9,559.22
6,557.00
3,002.22
64180 - Education
13,959.32
16,507.28
(2,547.96)
64190 - Business Licensing and Fees
291.70
0.00
291,70
64300 - Depreciation Expense
10,232.20
17,066.16
(6,833,96)
VISIT eW art
��, E A C H ins:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2020
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
64202 - Tax Preparation Fees
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
66212 - Community Sponsorships
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101- Research
67104 - Annual Marketing Outlook Event
67108 - Company -Sponsored Events
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Year To Date Year To Date
05/31/2020 05/31/2019
$ Variance Year over
7,773.15
8,774.45
(1,001.30)
162,599.18
155,517.92
7,081.26
91,421.73
103,512.73
(12,091.00)
3,423.91
3,058.22
365.69
94,845.64 106,570.95 (11,725.31)
1,168.18
1,163.00
4,419.54
8,671.58
3,594.51
7,242.00
9,182.23
17,076.58
0.00
4,900.00
3,538.26
3,425.94
25,497.00
3,600.00
81,000.00
93,000.00
450.00
10,450.00
(1,000.00)
1,300.00
0.00
5,200.00
109,485.26 121,875.94
5,476.84
4,002.85
5,086.31
9,539.86
369.96
1,563.92
2,347.03
2,359.20
215.00
288.43
13,495.14
17,754."L6
389,607.45
418,795.65
63,230.00
50,236.64
78,957.65
31,366.65
23,173.02
36,340.55
82,598.36
226,742.77
1,756.33
0.00
249,715.36 344,686.61
6,500.00
1,500.00
74,984.71
0.00
82,984.71
0.00
0.00
0.00
1,690.00
0.00
1,250.00
2,940.00
1,394.08
1,394.08
5.18
(4,252.04)
(3,64749)
(7,894.35)
(4,900.00)
112.32
21,897.00
(12,000.00)
(10,000.00)
(2,300.00)
(5,200.00)
(12,390.68)
1,473.99
(4,453.55)
(1,193.96)
(12.17)
(73.43)
(4,259.12)
(29,188.20)
12, 993.36
47,591.00
(13,167.53)
(144,144.41)
1,756.33
(94, 971.25)
6,500.00
(190.00)
74, 984.71
(1,250.00)
80,044.71
(1,394.08)
(1,394.08)
VISIT eW art
��, E A C H ins:.
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for May 2020
Year To Date Year To Date
05/31/2020 05/31/2019
Digital Marketing
$ Variance Year over
67508 - Website Redesign Expenses
18,887.33
5,955.46
12,931.87
66211 - CRM Maintenance
39,208.33
12,375.00
26,833.33
Total Digital Marketing
58,095.66
18,330.46
39,765.20
Communications/Public Relations
67605 - Media Special Programs
1,939.98
62,910.80
(60,970.82)
Total Communications/Public Relations
1,939.98
62,910.80
(60,970.82)
Total Marketing Expenses
143,020.35
85,575.34
57,445.01
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67404 - International Trade Shows
0.00
50,000.00
(50,000.00)
67411 - International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
118,782.35
(118,782.35)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
49,950.23
61,425.15
(11,474,92)
66222 - Trade Show Registration
149,870.21
154,748.06
(4,877.85)
66223 - Trade Show Booth Expenses
182,925.06
99,454.04
83,471.02
Total Trade Show Expense
382,745.50
315,627.25
67,118.25
Sponsorships
66231- Sales Group Enhancement Credit
288,837.51
367,001.15
(78,163.64)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
81,353.74
94,391.66
(13,037.92)
66234 - Industry Sponsorships
7,802.24
83,475.33
(75,673.09)
Total Sponsorships
377,993.49
576,405.67
(198,412.18)
Sales Initiatives
66207 - Site Inspections
37,976.08
43,455.77
(5,479.69)
66208 - Client Events
47,031.07
65,950.06
(18,918.99)
66210 - Conference Services
165.55
100.01
65.54
66209 - Database/Prospecting
98,758.93
97,295.42
1,463.51
Total Sales Initiatives
183,931.63
206,801.26
(22,869.63)
Total Direct Sales Initiatives
944,670.62
1,098,834.18
(154,163.56)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
152,628.63
253,802.11
(101,173.48)
66247 - Partner Engagement Expenses
15,849.57
6,295.98
9,553.59
66248 - Group Marketing Initiatives
62,792.66
112,503.51
(49,710.85)
Total Customized Destination Support
231,270.86
372,601.60
(141,330.74)
Total Expenses
3,213,112.14
3,653,484.06
(440,371.92)
Net Income
995,893.58
473,088.70
522,804.88
visIT e
lort
_CH Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2020
Year To Date Year To Date
4/30/2020 4/30/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
4,080,062.66
3,704,421.61
375,641.05
Total Revenue
4,080,062.66
3,704,421.61
37S,641.OS
Other Income
46001 - Interest Income
1,911.25
2,019.45
(108.20)
Total Other Income
1,911.2S
2,019.45
(108.20)
Total Operating Revenue
4,081,973.91
3,706,441.06
375,532.85
Expenses
Salary and Wages
61010 - Salaries and Wages
859,311.66
774,383.02
84,928.64
61015 - Bonuses and Commissions
68,403.16
99,317.73
(30,914.57)
61020 - Auto Allowance
12,655.00
13,415.00
(760.00)
61030 - Payroll Tax Expenses
73,853.03
67,269.99
6,583.04
Total Salary and Wages
1,014,222.8E
9S4,38S.74
S9,837.11
Benefits
61110 - Medical Insurance
101,753.59
76,937.16
24,816.43
61115 - Benefit Administrative Fees
269.09
151.00
118.09
61120 - Dental Insurance
6,570.42
6,450.34
120.08
61125 - Vision Insurance
1,127.34
1,107.92
19.42
61130 - Life and Disability
14,407.06
10,581.38
3,825.68
61140 - Retirement Plan (401k)
68,797.80
63,515.96
5,281.84
61150 - Flexible Spending Plan
1,686.94
222.21
1,464.73
61160 - Employee Engagement Benefit
6,750.65
4,382.54
2,368.11
Total Benefits
201,362.89
163,348.S1
38,014.38
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
6,362.72
10,625.79
(4,263.07)
64101 - Kitchen Supplies
3,741.51
0.00
3,741.51
64110 - Office Equipment Leases
535.18
2,867.00
(2,331.82)
64115 - Office Equipment (non-deprec)
2,328.46
2,115.05
213.41
64120 - Equipment Repairs & Maintenance
17,550.25
14,056.93
3,493.32
64125 - Computer Software (non-deprec)
9,063.00
6,942.15
2,120.85
64130 - Voice and Data - Office
4,638.37
4,839.99
(201.62)
64135 - Telephone - Mobile
7,505.28
8,365.64
(860.36)
64145 - Shipping Charges
3,049.80
2,753.10
296.70
64150 - Bank Fees
30.00
90.00
(60.00)
64160 - Membership Dues
40,939.18
30,722.55
10,216.63
64165 - Subscriptions
170.25
346.43
(176.18)
64170 - Team Meetings
21,934.90
12,205.84
9,729.06
64175 - Governance Meeting Expenses
9,559.22
6,557.00
3,002.22
64180 - Education
13,959.32
15,262.28
(1,302.96)
64190 - Business Licensing and Fees
291.70
0.00
291.70
64300 - Depreciation Expense
9,760.75
15,449.81
(5,689.06)
visIT e
lort
_CH Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2020
Year To Date Year To Date
4/30/2020 4/30/2019
$ Variance Year over
64600 - Business Meals/Entertainment
7,773.15
7,991.50
(218.35)
Total Operating Expenses
159,193.04
141,191.06
18,001.98
Office Lease and Expenses
62100 - Office Lease
90,878.18
94,050.33
(3,172.15)
62110 - Office Repairs and Maintenance
3,423.91
3,023.22
400.69
Total Office Lease and Expenses
94,302.09
97,073.55
(2,771.46)
Insurance
63100 - General Liability Insurance
1,168.18
1,163.00
5.18
63200 - Workers Compensation Insurance
4,419.54
8,020.08
(3,600.54)
63300 - Board of Directors Insurance
3,594.51
7,242.00
(3,647.49)
Total Insurance
9,182.23
16,425.08
(7,242.85)
Professional Fees
64203 - Recruiting Fees
0.00
4,900.00
(4,900.00)
64205 - Payroll Processing Service
3,356.74
3,134.38
222.36
64206 - Independent Contractors
25,497.00
3,600.00
21,897.00
67004 - Marketing NBCo Fees
81,000.00
93,000.00
(12,000.00)
64201 - Audit Fees
450.00
10,450.00
(10,000.00)
64202 - Tax Preparation Fees
(1,000.00)
1,300.00
(2,300.00)
64204 - Legal Fees
0.00
5,200.00
(5,200.00)
Total Professional Fees
109,303.74
121,584.38
(12,280.64)
Travel Expenses
65100 - Airfare
5,476.84
4,002.85
1,473.99
65200 - Accommodations
5,086.31
8,195.74
(3,109.43)
65300 - Meals
369.96
811.79
(441.83)
65400 - Transportation Costs
2,347.03
2,246.91
100.12
65500 - Other Travel Costs
215.00
126.43
88.57
Total Travel Expenses
13,495.14
15,383.72
(1,888.58)
Total General and Administrative
385,476.24
391,657.79
(6,181.55)
Advertising Expenses
66101 - Advertising - Purchased
65,255.00
42,885.92
22,369.08
66121 - Promotional Gift Cards
78,957.65
31,366.65
47,591.00
66123 - Promotional Client Gifts
23,173.02
25,798.21
(2,625.19)
66203 - Creative Design/Development
82,598.36
221,073.77
(138,475.41)
Total Advertising Expenses
249,984.03
321,124.55
(71,140.52)
Marketing Expenses
Community Relations
67103 - Community Partner Events
6,500.00
0.00
6,500.00
67101 - Research
1,500.00
1,690.00
(190.00)
67104 - Annual Marketing Outlook Event
74,984.71
0.00
74,984.71
67108 - Company -Sponsored Events
0.00
1,250.00
(1,250.00)
Total Community Relations
82,984.71
2,940.00
80,044.71
Marketing Collateral
67311 - Collateral Production Expenses
0.00
1,394.08
(1,394.08)
Total Marketing Collateral
0.00
1,394.08
(1,394.08)
Digital Marketing
67508 - Website Redesign Expenses
16,675.30
5,104.68
11,570.62
visIT e
lort
_CH Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for April 2020
Year To Date Year To Date
4/30/2020 4/30/2019
$ Variance Year over
66211 - CRM Maintenance
39,208.33
11,250.00
27,958.33
Total Digital Marketing
55,883.63
16,354.68
39,528.95
Communications/Public Relations
67605 - Media Special Programs
1,939.98
14,654.90
(12,714.92)
Total Communications/Public Relations
1,939.98
14,654.90
(12,714.92)
Total Marketing Expenses
140,808.32
35,343.66
105,464.66
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67404 - International Trade Shows
0.00
50,000.00
(50,000.00)
67411 - International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
118,782.35
(118,782.35)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
49,950.23
55,016.85
(5,066.62)
66222 - Trade Show Registration
149,870.21
153,273.06
(3,402.85)
66223 - Trade Show Booth Expenses
194,554.54
103,972.38
90,582.16
Total Trade Show Expense
394,374.98
312,262.29
82,112.69
Sponsorships
66231 - Sales Group Enhancement Credit
289,337.51
337,894.79
(48,557.28)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
81,353.74
84,346.66
(2,992.92)
66234 - Industry Sponsorships
10,802.24
83,475.33
(72,673.09)
Total Sponsorships
381,493.49
537,254.31
(155,760.82)
Sales Initiatives
66207 - Site Inspections
38,081.08
36,908.58
1,172.50
66208 - Client Events
47,031.07
65,669.02
(18,637.95)
66210 - Conference Services
165.55
32.27
133.28
66209 - Database/Prospecting
98,758.93
90,455.84
8,303.09
Total Sales Initiatives
184,036.63
193,065.71
(9,029.08)
Total Direct Sales Initiatives
959,905.10
1,042,582.31
(82,677.21)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
152,628.63
213,677.11
(61,048.48)
66247 - Partner Engagement Expenses
15,849.57
5,365.70
10,483.87
66248 - Group Marketing Initiatives
62,792.66
85,802.89
(23,010.23)
Total Customized Destination Support
231,270.86
304,845.70
(73,574.84)
Total Expenses
3,183,030.29
3,332,070.61
(149,040.32)
Net Income
898,943.62
374,370.45
524,573.17
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Created On:
4/23/2020
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor _ Document No
TBIDChecking - Union Bank NA
Account No: 0030025482
1/3/2020
V01143--The Irvine Company, LLC S27135-0120
665.35
1/31/2020
1/3/2020
V01143--The Irvine Company, LLC 1/20 Ste130 Lea
10,099.85
1/31/2020
1/6/2020
V01117--TASC PPE 12/28/19TAS
748.15
1/31/2020
1/6/2020
V00150--Blue Shield of California 1/20 BlueShield
7,275.41
1/31/2020
1/7/2020
V01038--Skyward Technical Solutions 7166
1,445.00
1/31/2020
1/7/2020
V01346--Intacct 7157
75.00
1/31/2020
1/7/2020
V00889--PenSys, Inc. 7151
907.50
1/31/2020
1/7/2020
V01797--Spark Branding House, INC 7150
25,500.00
1/31/2020
1/7/2020
V01804--MPI Minnesota Chapter 7165
1,000.00
1/31/2020
1/7/2020
V00947--Hyatt Regency John Wayne Airport NE 7153
1,000.00
1/31/2020
1/7/2020
V00947--Hyatt Regency John Wayne Airport NE 7160
1,000.00
1/31/2020
1/7/2020
V00130--Best Chauffeured Worldwide 7146
114.36
1/31/2020
1/7/2020
V01474--Renaissance Newport Beach 7159
1,000.00
2/28/2020
1/7/2020
V00102--Balboa Bay Resort 7156
500.00
1/31/2020
1/7/2020
V00102--Balboa Bay Resort 7149
500.00
1/31/2020
1/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7158
1,000.00
1/31/2020
1/7/2020
V00102--Balboa Bay Resort 7164
1,000.00
1/31/2020
1/7/2020
V00102--Balboa Bay Resort 7163
3,000.00
1/31/2020
1/7/2020
V00553--Fashion Island Hotel 7162
1,000.00
1/31/2020
1/7/2020
V00526--Hyatt Regency Newport Beach 7161
1,000.00
1/31/2020
1/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7154
4,000.00
1/31/2020
1/7/2020
V00921--Prestige Global Meeting Source 7148
5,000.00
In Transit
1/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7152
1,000.00
1/31/2020
1/7/2020
V01094--Strategic Database Research 7155
3,500.00
1/31/2020
1/7/2020
V01498--Newport Beach Country Club* 7147
460.00
1/31/2020
1/8/2020
V00423--Franchise Tax Board PP 12/20/2019-H
2O0.00
1/31/2020
1/8/2020
V00920--Prestige Concepts Promotion and Ever 1132
7,686.47
1/31/2020
1/8/2020
V00920--Prestige Concepts Promotion and Ever Voided - 7053
-4,172.66
1/31/2020
1/8/2020
V00920--Prestige Concepts Promotion and Ever Voided - 7047
-113.31
1/31/2020
1/8/2020
V00920--Prestige Concepts Promotion and Ever Voided - 7055
-3,060.82
1/31/2020
1/8/2020
V00920--Prestige Concepts Promotion and Ever Voided - 7056
-339.68
1/31/2020
1/9/2020
V01190--Transamerica Retirement Solutions PP 1/3/20 401(k
6,941.36
1/31/2020
1/10/2020
V00130--Best Chauffeured Worldwide 7182
620.60
1/31/2020
1/10/2020
V00767--Newport Beach Bayview Marriott 7181
1,414.23
1/31/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7171
1,000.00
1/31/2020
1/10/2020
V00526--Hyatt Regency Newport Beach 7180
2,000.00
2/28/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7193
2,000.00
1/31/2020
1/10/2020
V01620--Lido House, LLC 7201
1,000.00
1/31/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7199
1,000.00
1/31/2020
1/10/2020
V00102--Balboa Bay Resort 7185
1,000.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7179
1,000.00
1/31/2020
1/10/2020
V00526--Hyatt Regency Newport Beach 7200
1,500.00
2/28/2020
1/10/2020
V01474--Renaissance Newport Beach 7173
1,000.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7178
1,000.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7192
1,000.00
1/31/2020
1/10/2020
V00526--Hyatt Regency Newport Beach 7205
500.00
2/28/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7191
1,000.00
1/31/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7170
2,000.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7190
500.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7198
1,000.00
1/31/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7189
1,500.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7177
1,000.00
1/31/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7169
500.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7204
1,900.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7188
2,000.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7172
1,500.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7184
2,000.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7168
2,000.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7176
10,300.00
1/31/2020
1/10/2020
V00767--Newport Beach Bayview Marriott 7197
500.00
1/31/2020
1/10/2020
V00102--Balboa Bay Resort 7196
1,000.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7203
1,500.00
1/31/2020
1/10/2020
V00526--Hyatt Regency Newport Beach 7187
2,500.00
2/28/2020
1/10/2020
V00553--Fashion Island Hotel 7183
1,000.00
1/31/2020
1/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7202
1,000.00
1/31/2020
1/10/2020
V00102--Balboa Bay Resort 7175
1,000.00
1/31/2020
1/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7186
500.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7195
2,500.00
1/31/2020
1/10/2020
V00553--Fashion Island Hotel 7167
1,000.00
1/31/2020
1/10/2020
V00918--Premier Displays and Exhibits 7194
2,053.93
1/31/2020
1/10/2020
V00169--Bright Business Media LLC 7174
6,000.00
1/31/2020
1/10/2020
V01544--Jennifer Brannon 1133
92.59
1/31/2020
1/14/2020
V00423--Franchise Tax Board PP 1/3/20-Hoy
200.00
1/31/2020
1/15/2020
V01713--Northeast CVB Reps 7206
400.00
1/31/2020
1/15/2020
V00947--Hyatt Regency John Wayne Airport NE 7207
1,500.00
1/31/2020
1/21/2020
V01117--TASC PPEI/11/20TASC2
655.56
1/31/2020
1/21/2020
V01117--TASC Voided -PPE 1/11/20TASC
-655.56
1/31/2020
1/21/2020
V01117--TASC PPE 1/11/20TASC
655.56
1/31/2020
1/22/2020
V00773--Newport Beach Marriott Hotel and Spa 7220
500.00
2/28/2020
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Created On:
4/23/2020
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor Document No
TBIDChecking - Union Bank NA
Account No: 0030025482
1/22/2020
V01812--Lorie Eber 7223
500.00
2/28/2020
1/22/2020
V01620--Lido House, LLC 7214
999.92
2/28/2020
1/22/2020
V00526--Hyatt Regency Newport Beach 7218
1,000.00
2/28/2020
1/22/2020
V00526--Hyatt Regency Newport Beach 7219
500.00
2/28/2020
1/22/2020
V01620--Lido House, LLC 7221
1,000.00
2/28/2020
1/22/2020
V01620--Lido House, LLC 7222
1,000.00
2/28/2020
1/22/2020
V00767--Newport Beach Bayview Marriott 7217
474.60
2/28/2020
1/22/2020
V01620--Lido House, LLC 7216
500.00
2/28/2020
1/22/2020
V01620--Lido House, LLC 7213
500.00
2/28/2020
1/22/2020
V00553--Fashion Island Hotel 7212
1,000.00
1/31/2020
1/22/2020
V00773--Newport Beach Marriott Hotel and Spa 7215
891.38
2/28/2020
1/22/2020
V01756--Tarsus Connect LLC 7209
15,000.00
1/31/2020
1/22/2020
V01080--Stamats Meeting Media, Inc 7210
8,315.00
1/31/2020
1/22/2020
V00403--FICP 7208
21,060.00
1/31/2020
1/22/2020
V01797--Spark Branding House, INC 7211
2,109.10
1/31/2020
1/22/2020
V01740--Choice Builder 2/20 Dental/Vis
647.43
1/31/2020
1/22/2020
V01190--Transamerica Retirement Solutions PP 1/17/20 401(
8,206.79
1/31/2020
1/24/2020
V00423--Franchise Tax Board PP 1/17/20-Hoy
200.00
1/31/2020
1/24/2020
V01346--Intacct 7224
75.00
2/28/2020
1/24/2020
V00130--Best Chauffeured Worldwide 7238
230.86
2/28/2020
1/24/2020
V01564--Standard Insurance PAS Executive 7229
1,299.64
2/28/2020
1/24/2020
V01620--Lido House, LLC 7237
1,000.00
2/28/2020
1/24/2020
V00773--Newport Beach Marriott Hotel and Spa 7232
500.00
2/28/2020
1/24/2020
V00773--Newport Beach Marriott Hotel and Spa 7236
1,500.00
2/28/2020
1/24/2020
V00102--Balboa Bay Resort 7235
1,000.00
2/28/2020
1/24/2020
V00947--Hyatt Regency John Wayne Airport NE 7234
1,500.00
2/28/2020
1/24/2020
V00102--Balboa Bay Resort 7228
625.00
2/28/2020
1/24/2020
V00526--Hyatt Regency Newport Beach 7225
2,406.66
2/28/2020
1/24/2020
V00102--Balboa Bay Resort 7231
750.00
2/28/2020
1/24/2020
V01474--Renaissance Newport Beach 7230
1,000.00
2/28/2020
1/24/2020
V00947--Hyatt Regency John Wayne Airport NE 7233
1,000.00
2/28/2020
1/24/2020
V00302--Cvent, Inc. 7227
11,071.35
1/31/2020
1/24/2020
V00243--City of Newport Beach {Revenue Divis 7226
42.50
2/28/2020
1/29/2020
V01563--Standard Insurance Company 1134
1,093.06
2/28/2020
1/29/2020
V00773--Newport Beach Marriott Hotel and Spa 7247
1,000.00
2/28/2020
1/29/2020
V00553--Fashion Island Hotel 7244
1,000.00
2/28/2020
1/29/2020
V01094--Strategic Database Research 7246
3,500.00
2/28/2020
1/29/2020
V01498--Newport Beach Country Club* 7242
460.00
2/28/2020
1/29/2020
V00773--Newport Beach Marriott Hotel and Spa 7239
1,500.00
2/28/2020
1/29/2020
V01474--Renaissance Newport Beach 7241
500.00
2/28/2020
1/29/2020
V00773--Newport Beach Marriott Hotel and Spa 7243
2,136.81
2/28/2020
1/29/2020
V00773--Newport Beach Marriott Hotel and Spa 7245
1,500.00
2/28/2020
1/29/2020
V00526--Hyatt Regency Newport Beach 7240
1,000.00
2/28/2020
1/31/2020
V01143--The Irvine Company, LLC 0220 Ste130 Lea
10,099.85
1/31/2020
2/3/2020
V00947--Hyatt Regency John Wayne Airport NE Voided - 6947
-1,000.00
2/28/2020
2/3/2020
V00773--Newport Beach Marriott Hotel and Spa Voided - 6856
-1,722.83
2/28/2020
2/3/2020
V01038--Skyward Technical Solutions 7250
2,915.17
2/28/2020
2/3/2020
V01809--MPI Sacramento 7256
3,000.00
3/31/2020
2/3/2020
V00102--Balboa Bay Resort 7255
2,000.00
2/28/2020
2/3/2020
V00102--Balboa Bay Resort 7252
1,000.00
2/28/2020
2/3/2020
V00553--Fashion Island Hotel 7249
1,000.00
2/28/2020
2/3/2020
V01474--Renaissance Newport Beach 7254
1,000.00
2/28/2020
2/3/2020
V00947--Hyatt Regency John Wayne Airport NE 7251
500.00
2/28/2020
2/3/2020
V01474--Renaissance Newport Beach 7248
1,000.00
2/28/2020
2/3/2020
V01474--Renaissance Newport Beach 7253
500.00
2/28/2020
2/3/2020
V00150--Blue Shield of California 2/20 BlueSh Ins
7,275.41
2/28/2020
2/3/2020
V01117--TASC PPE 1/25/20TASC
655.56
2/28/2020
2/4/2020
V00102--Balboa Bay Resort Voided - 6993
-800.00
2/28/2020
2/4/2020
V00791--Noble Studios Voided - 6957
-27,225.00
2/28/2020
2/5/2020
V01190--Transamerica Retirement Solutions PP 1/31/20 401(
6,983.94
2/28/2020
2/6/2020
V01083--Staples 7258
37.70
2/28/2020
2/6/2020
V00791--Noble Studios 7261
27,225.00
2/28/2020
2/6/2020
V00102--Balboa Bay Resort 7257
800.00
3/31/2020
2/6/2020
V00947--Hyatt Regency John Wayne Airport NE 7260
1,000.00
2/28/2020
2/6/2020
V00773--Newport Beach Marriott Hotel and Spa 7259
1,722.83
2/28/2020
2/7/2020
V00767--Newport Beach Bayview Marriott Voided - 6973
-500.00
2/28/2020
2/7/2020
V00553--Fashion Island Hotel 7287
125.00
2/28/2020
2/7/2020
V00553--Fashion Island Hotel 7276
3,000.00
2/28/2020
2/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7277
1,000.00
2/28/2020
2/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7282
1,000.00
2/28/2020
2/7/2020
V00102--Balboa Bay Resort 7288
500.00
2/28/2020
2/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7296
2,000.00
2/28/2020
2/7/2020
V00526--Hyatt Regency Newport Beach 7281
2,000.00
2/28/2020
2/7/2020
V01620--Lido House, LLC 7280
500.00
2/28/2020
2/7/2020
V00553--Fashion Island Hotel 7292
125.00
2/28/2020
2/7/2020
V00553--Fashion Island Hotel 7275
125.00
2/28/2020
2/7/2020
V00102--Balboa Bay Resort 7286
1,000.00
2/28/2020
2/7/2020
V00526--Hyatt Regency Newport Beach 7279
750.00
2/28/2020
2/7/2020
V01620--Lido House, LLC 7274
1,000.00
2/28/2020
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Created On:
4/23/2020
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor Document No
Amount
OI�
TBIDChecking - Union Bank NA
Account No: 0030025482
2/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7273
2,000.00
2/28/2020
2/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7269
3,500.00
2/28/2020
2/7/2020
V00102--Balboa Bay Resort 7271
1,000.00
2/28/2020
2/7/2020
V00526--Hyatt Regency Newport Beach 7268
1,000.00
2/28/2020
2/7/2020
V00767--Newport Beach Bayview Marriott 7270
412.45
2/28/2020
2/7/2020
V01474--Renaissance Newport Beach 7263
500.00
2/28/2020
2/7/2020
V00947--Hyatt Regency John Wayne Airport NE 7266
500.00
2/28/2020
2/7/2020
V01474--Renaissance Newport Beach 7264
500.00
2/28/2020
2/7/2020
V00773--Newport Beach Marriott Hotel and Spa 7267
3,500.00
2/28/2020
2/7/2020
V00203--CaISAE 7265
5,000.00
2/28/2020
2/7/2020
V00604--Kim Kelley Productions 7262
2,400.00
2/28/2020
2/7/2020
V00553--Fashion Island Hotel 7272
1,000.00
2/28/2020
2/10/2020
V00767--Newport Beach Bayview Marriott 7285
500.00
2/28/2020
2/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7295
500.00
2/28/2020
2/10/2020
V01620--Lido House, LLC 7294
1,000.00
2/28/2020
2/10/2020
V00947--Hyatt Regency John Wayne Airport NE 7278
1,000.00
2/28/2020
2/10/2020
V00553--Fashion Island Hotel 7293
1,000.00
2/28/2020
2/10/2020
V00773--Newport Beach Marriott Hotel and Spa 7291
1,000.00
2/28/2020
2/10/2020
V00553--Fashion Island Hotel 7284
1,000.00
2/28/2020
2/10/2020
V00553--Fashion Island Hotel 7283
125.00
2/28/2020
2/10/2020
V00102--Balboa Bay Resort 7290
500.00
2/28/2020
2/10/2020
V00553--Fashion Island Hotel 7289
125.00
2/28/2020
2/12/2020
V00423--Franchise Tax Board PP 1/31/20-Hoy
200.00
2/28/2020
2/12/2020
V00920--Prestige Concepts Promotion and Ever 7297
509.12
2/28/2020
2/12/2020
V01038--Skyward Technical Solutions 7298
9,528.46
2/28/2020
2/12/2020
V01474--Renaissance Newport Beach Voided - 7159
-1,000.00
2/28/2020
2/13/2020
V00773--Newport Beach Marriott Hotel and Spa 7301
1,000.00
2/28/2020
2/13/2020
V00773--Newport Beach Marriott Hotel and Spa 7299
1,000.00
2/28/2020
2/13/2020
V00553--Fashion Island Hotel 7303
500.00
2/28/2020
2/13/2020
V00553--Fashion Island Hotel 7300
500.00
2/28/2020
2/13/2020
V00773--Newport Beach Marriott Hotel and Spa 7302
2,000.00
2/28/2020
2/14/2020
V00492--HelmsBriscae Performance Group Inc 7304
30,000.00
3/31/2020
2/18/2020
V00773--Newport Beach Marriott Hotel and Spa 7305
6,198.00
3/31/2020
2/18/2020
V01117--TASC PPE 2/8/20TASC
655.56
2/28/2020
2/19/2020
V00773--Newport Beach Marriott Hotel and Spa 7306
1,000.00
3/31/2020
2/19/2020
V00553--Fashion Island Hotel 7307
4,200.00
2/28/2020
2/19/2020
V01474--Renaissance Newport Beach 7308
500.00
3/31/2020
2/20/2020
V01190--Transamerica Retirement Solutions PP 2/14/20 401k
7,054.59
2/28/2020
2/21/2020
V01740--Choice Builder 3/20 Dental/Vis
647.43
2/28/2020
2/24/2020
V00423--Franchise Tax Board PP 2/14/20-Hoy
200.00
2/28/2020
2/26/2020
V01563--Standard Insurance Company 7321
546.53
3/31/2020
2/26/2020
V01346--Intacct 7320
150.00
3/31/2020
2/26/2020
V01083--Staples 7319
958.26
3/31/2020
2/26/2020
V00767--Newport Beach Bayview Marriott 7313
457.65
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7310
500.00
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7317
2,000.00
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7312
500.00
3/31/2020
2/26/2020
V01620--Lido House, LLC 7318
1,251.18
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7315
500.00
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7311
500.00
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7314
1,000.00
3/31/2020
2/26/2020
V00553--Fashion Island Hotel 7316
1,056.96
3/31/2020
2/26/2020
V00773--Newport Beach Marriott Hotel and Spa 7309
2,000.00
3/31/2020
2/27/2020
V01094--Strategic Database Research 7322
3,500.00
3/31/2020
2/27/2020
V00918--Premier Displays and Exhibits 7326
590.04
3/31/2020
2/27/2020
V01498--Newport Beach Country Club* 7323
488.50
3/31/2020
2/27/2020
V00526--Hyatt Regency Newport Beach 7325
273.68
3/31/2020
2/27/2020
V00526--Hyatt Regency Newport Beach 7324
2,000.00
3/31/2020
2/28/2020
V01038--Skyward Technical Solutions 7327
1,445.00
3/31/2020
2/28/2020
V01474--Renaissance Newport Beach 7328
500.00
3/31/2020
3/2/2020
V01117--TASC PPE 2/22/20TASC
655.56
3/31/2020
3/2/2020
V01797--Spark Branding House, INC 7337
12,500.00
3/31/2020
3/2/2020
V00773--Newport Beach Marriott Hotel and Spa 7329
1,500.00
3/31/2020
3/2/2020
V00102--Balboa Bay Resort 7333
1,250.00
3/31/2020
3/2/2020
V00553--Fashion Island Hotel 7331
1,000.00
3/31/2020
3/2/2020
V01620--Lido House, LLC 7336
500.00
3/31/2020
3/2/2020
V00553--Fashion Island Hotel 7338
500.00
3/31/2020
3/2/2020
V00773--Newport Beach Marriott Hotel and Spa 7335
500.00
3/31/2020
3/2/2020
V00526--Hyatt Regency Newport Beach 7330
1,000.00
3/31/2020
3/2/2020
V01474--Renaissance Newport Beach 7334
1,359.68
3/31/2020
3/2/2020
V01474--Renaissance Newport Beach 7332
8,519.32
3/31/2020
3/4/2020
V01190--Transamerica Retirement Solutions PP 2/28/20 401(
7,042.97
3/31/2020
3/4/2020
V01809--MPI Sacramento Voided - 7256
-3,000.00
3/31/2020
3/5/2020
V00947--Hyatt Regency John Wayne Airport NE 7344
1,600.00
3/31/2020
3/5/2020
V01083--Staples 7341
21.75
3/31/2020
3/5/2020
V01474--Renaissance Newport Beach 7352
1,500.00
3/31/2020
3/5/2020
V00553--Fashion Island Hotel 7361
125.00
3/31/2020
3/5/2020
V00526--Hyatt Regency Newport Beach 7362
1,000.00
3/31/2020
3/5/2020
V00526--Hyatt Regency Newport Beach 7354
2,000.00
3/31/2020
Company Name:
Visit Newport Beach, Inc.
Report Name:
Check Register
Created On:
4/23/2020
Location:
400--Visit Newport Beach, Inc. Group Sales
Bank
Date
Vendor Document No
TBIDChecking - Union Bank NA
Account No: 0030025482
3/5/2020
V00526--Hyatt Regency Newport Beach 7360
1,000.00
3/31/2020
3/5/2020
V01474--Renaissance Newport Beach 7351
500.00
3/31/2020
3/5/2020
V00773--Newport Beach Marriott Hotel and Spa 7343
500.00
3/31/2020
3/5/2020
V00526--Hyatt Regency Newport Beach 7350
1,500.00
3/31/2020
3/5/2020
V01474--Renaissance Newport Beach 7359
1,000.00
3/31/2020
3/5/2020
V01474--Renaissance Newport Beach 7358
1,000.00
3/31/2020
3/5/2020
V00102--Balboa Bay Resort 7349
1,500.00
3/31/2020
3/5/2020
V00947--Hyatt Regency John Wayne Airport NE 7348
1,500.00
3/31/2020
3/5/2020
V00947--Hyatt Regency John Wayne Airport NE 7346
500.00
3/31/2020
3/5/2020
V01474--Renaissance Newport Beach 7347
1,000.00
3/31/2020
3/5/2020
V00526--Hyatt Regency Newport Beach 7345
1,000.00
3/31/2020
3/5/2020
V00773--Newport Beach Marriott Hotel and Spa 7357
750.00
3/31/2020
3/5/2020
V00773--Newport Beach Marriott Hotel and Spa 7340
2,000.00
3/31/2020
3/5/2020
V00773--Newport Beach Marriott Hotel and Spa 7356
500.00
3/31/2020
3/5/2020
V01823--Suzanne Lynne Draper 7353
917.76
In Transit
3/5/2020
V00526--Hyatt Regency Newport Beach 7342
2,000.00
3/31/2020
3/5/2020
V00890--Performance Solutions Group 7339
850.00
3/31/2020
3/5/2020
V00918--Premier Displays and Exhibits 7355
16,097.61
3/31/2020
3/5/2020
V01143--The Irvine Company, LLC 3/20 Ste130 Lea
10,099.85
3/31/2020
3/6/2020
V00423--Franchise Tax Board PP 2/I8/20-Hoy
200.00
3/31/2020
3/6/2020
V00150--Blue Shield of California 3/20 Blueshield
7,275.41
3/31/2020
3/10/2020
V01564--Standard Insurance RAS Executive 7364
1,299.64
3/31/2020
3/10/2020
V00604--Kim Kelley Productions 7363
2,400.00
3/31/2020
3/10/2020
V01377--Newport Beach and Company Q3_FY20 Marketi
27,000.00
3/31/2020
3/11/2020
V01827--Debbie Clore -Myers 1135
482.96
In Transit
3/11/2020
V00920--Prestige Concepts Promotion and Ever 7366
5,148.92
3/31/2020
3/11/2020
V00553--Fashion Island Hotel 7365
4,200.00
3/31/2020
3/16/2020
V01117--TASC PPE 3/7/20TASC
600.00
3/31/2020
3/17/2020
V01117--TASC PPE 3/7/20TASC2
55.56
3/31/2020
3/17/2020
V01190--Transamerica Retirement Solutions PP 3/13/20 401(
7,056.18
3/31/2020
3/18/2020
V00890--Performance Solutions Group 7367
1,487.00
3/31/2020
3/23/2020
V00423--Franchise Tax Board PP 3/13/20-Ho
200.00
3/31/2020
3/23/2020
V01740--Choice Builder 4/20 Dental/Vis
647.43
3/31/2020
3/24/2020
V01346--Intacct 7369
150.00
3/31/2020
3/24/2020
V00767--Newport Beach Bayview Marriott 7368
271.20
In Transit
3/24/2020
V01313--Greenhaus Inc. 7370
794.14
3/31/2020
3/30/2020
V01117--TASC PPE 3/21/20TASC
655.56
3/31/2020
3/31/2020
V01474--Renaissance Newport Beach Voided - 7352
-1,500.00
3/31/2020
3/31/2020
V01474--Renaissance Newport Beach Voided - 7351
-500.00
3/31/2020
3/31/2020
V01474--Renaissance Newport Beach Voided - 7359
-1,000.00
3/31/2020
3/31/2020
V01474--Renaissance Newport Beach Voided -7358
-1,000.00
3/31/2020
3/31/2020
V01474--Renaissance Newport Beach Voided - 7347
-1,000.00
3/31/2020
3/31/2020
V00947--Hyatt Regency John Wayne Airport NE Voided - 7346
-500.00
3/31/2020
3/31/2020
V00947--Hyatt Regency John Wayne Airport NE Voided - 7348
-1,500.00
3/31/2020
Total for TBIDChecking
548,943.53
VISIT VE
or't
ACH
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101 - Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2020
Year To Date Year To Date
03/31/2020 03/31/2019
$ Variance Year over
3,675,349.38
3,344,770.08
330,579.30
3,675,349.38
3,344,770.08
330,579.30
1,881.23
1,963.39
(82.16)
1,881.23
1,963.39
(82.16)
3,677,230.61
3,346,733.47
330,497.14
774,073.83
700,642.28
73,431.55
64,453.16
72,894.73
(8,441.57)
12,655.00
12,025.00
630.00
63,873.67
59,612.61
4,261.06
915,055.66
845,174.62
69,881.04
86,286.54
68,929.47
17,357.07
244.09
126.00
118.09
5,733.76
5,420.00
313.76
1,012.39
922.12
90.27
12,910.64
9,952.14
2,958.50
66,666.43
55,278.23
11,388.20
1,546.20
222.21
1,323.99
6,750.65
3,872.69
2,877.96
181,150.70
144,722.86
36,427.84
6,362.72
9,124.50
3,741.51
0.00
535.18
2,580.30
2,328.46
2,115.05
16,105.25
12,339.43
7,691.50
5,603.75
4,292.28
4,354.87
6,930.28
7,514.46
2,954.58
2,496.34
30.00
90.00
40,914.19
28,091.77
170.25
346.43
21,934.90
12,004.76
9,559.22
6,557.00
13,959.32
14,154.79
291.70
0.00
9,289.30
13,858.14
7,773.15
7,688.03
154,863.79
128,919.62
(2,761.78)
3,741.51
(2,045.12)
213.41
3,765.82
2,087.75
(62.59)
(584.18)
458.24
(60.00)
12,822.42
(176.18)
9,930.14
3,002.22
(195.47)
291.70
(4,568.84)
85.12
25,944.17
VISIT VE
or't
ACH
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121- Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
67104 - Annual Marketing Outlook Event
67108 - Company -Sponsored Events
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67508 - Website Redesign Expenses
66211- CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for March 2020
Year To Date Year To Date
03/31/2020 03/31/2019
80,234.78 84,587.93
3,423.91 2,435.30
83,658.69 87,023.23
$ Variance Year over
(4,353.15)
988.61
(3,364.54)
1,182.66
1,163.00
19.66
4,419.54
7,368.58
(2,949.04)
3,594.51
7,242.00
(3,647.49)
9,196.71
15,773.58
(6,576.87)
0.00
4,900.00
(4,900.00)
2,925.12
2,837.62
87.50
24,237.00
3,600.00
20,637.00
81,000.00
64,500.00
16,500.00
450.00
10,450.00
(10,000.00)
(1,000.00)
1,300.00
(2,300.00)
0.00
5,200.00
(5,200.00)
107,612.12
92,787.62
14,824.50
5,476.84
3,273.19
2,203.65
5,086.31
7,146.49
(2,060.18)
369.96
749.61
(379.65)
2,347.03
2,029.42
317.61
215.00
45.00
170.00
13,495.14
13,243.71
251.43
368,826.45
337,747.76
31,078.69
65,255.00
38,926.05
26,328.95
78,957.65
31,366.65
47,591.00
23,173.02
25,863.51
(2,690.49)
80,348.36
108,080.02
(27,731.66)
247,734.03
204,236.23
43,497.80
6,500.00
0.00
6,500.00
1,500.00
1,690.00
(190.00)
74,984.71
0.00
74,984.71
0.00
1,250.00
(1,250.00)
82,984.71
2,940.00
80,044.71
0.00
939.15
(939.15)
0.00
939.15
(939.15)
14,463.27
4,253.90
10,209.37
39,208.33
10,125.00
29,083.33
53,671.60
14,378.90
39,292.70
1,939.98
3,657.83
(1,717.85)
VISIT VE
on
AdVisit Newport Beach, Inc. Group Sales (TBID)
ACH Statement of Activities YoY for March 2020
Year To Date
Year To Date
03/31/2020
03/31/2019
$ Variance Year over
Total Communications/Public Relations
1,939.98
3,657.83
(1,717.85)
Total Marketing Expenses
138,596.29
21,915.88
116,680.41
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67404 - International Trade Shows
0.00
50,000.00
(50,000.00)
67411 - International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
118,782.35
(118)782.35)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
49,950.23
51,148.86
(1,198.63)
66222 - Trade Show Registration
154,870.21
148,773.06
6,097.15
66223 - Trade Show Booth Expenses
194,292.73
101,279.01
93,013.72
Total Trade Show Expense
399,113.17
301,200.93
97,912.24
Sponsorships
66231 - Sales Group Enhancement Credit
292,837.51
333,577.64
(40,740.13)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
81,353.74
76,891.66
4,462.08
66234 - Industry Sponsorships
10,802.24
80,475.33
(69,673.09)
Total Sponsorships
384,993.49
522,482.16
(137)488.67)
Sales Initiatives
66207 - Site Inspections
37,491.08
33,059.29
4,431.79
66208 - Client Events
47,031.07
61,958.66
(14,927.59)
66210 - Conference Services
165.55
32.27
133.28
66209 - Database/Prospecting
98,758.93
83,616.26
15,142.67
Total Sales Initiatives
183,446.63
178,666.48
4,780.15
Total Direct Sales Initiatives
967,553.29
1,002,349.57
(34)796.28)
Customized Destination Support
66243 - Hotel Partner Booking Incentives
168,418.61
202,864.11
(34,445.50)
66247 - Partner Engagement Expenses
15,849.57
3,619.44
12,230.13
66248 - Group Marketing Initiatives
62,792.66
74,802.19
(12,009.53)
Total Customized Destination Support
247,060.84
281,285.74
(34)224.90)
Total Expenses
3,065,977.26
2,956,215.01
109,762.25
Net Income
611,253.35
390,518.46
220,734.89
VISIT ew ort
A EACH Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2020
Year To Date
Year To Date
02/29/2020
02/28/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
3,319,933.87
2,999,288.98
(320,644.89)
Total Revenue
3,319,933.87
2,999,288.98
(320,644.89)
Other Income
1,853.47
1,519.72
(333.75)
Total Operating Revenue
3,321,787.34
3,000,808.70
(320,978.64)
Expenses
Salary and Wages
61010 - Salaries and Wages
686,496.52
590,434.41
96,062.11
61015 - Bonuses and Commissions
58,805.44
67,722.82
(8,91738)
61020 - Auto Allowance
11,185.00
10,635.00
550.00
61030 - Payroll Tax Expenses
56,696.39
50,788.29
5,908.10
Total Salary and Wages
813,183.35
719,580.52
93,602.83
Benefits
61110 - Medical Insurance
76,976.42
61,001.76
15,974.66
61115 - Benefit Administrative Fees
175.91
84.00
91.91
61120 - Dental Insurance
5,149.49
4,714.04
435.45
61125 - Vision Insurance
910.10
799.56
110.54
61130 - Life and Disability
10,853.92
8,845.58
2,008.34
61140 - Retirement Plan (401k)
59,178.55
49,586.83
9,591.72
61150 - Flexible Spending Plan
1,320.69
24.89
1,295.80
61160 - Employee Engagement Benefit
6,672.75
3,524.69
3,148.06
Total Benefits
161,237.83
128,581.35
32,656.48
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
5,934.61
8,535.97
(2,601.36)
64101- Kitchen Supplies
3,406.82
0.00
3,406.82
64110 - Office Equipment Leases
535.18
2,293.60
(1,758.42)
64115 - Office Equipment (non-deprec)
2,328.46
1,130.34
1,198.12
64120 - Equipment Repairs & Maintenance
14,660.25
9,644.43
5,015.82
64125 - Computer Software (non-deprec)
7,447.00
5,149.09
2,29791
64130 - Voice and Data - Office
3,923.68
3,870.21
53.47
64135 - Telephone - Mobile
6,105.28
6,645.99
(540.71)
64145 - Shipping Charges
2,358.52
2,294.60
63.92
64150 - Bank Fees
30.00
0.00
30.00
64160 - Membership Dues
40,725.06
25,169.99
15,555.07
64165 - Subscriptions
170.25
346.43
(176.18)
64170 - Team Meetings
21,934.90
11,042.48
10,892.42
64175 - Governance Meeting Expenses
9,559.22
6,557.00
3,002.22
64180 - Education
19,234.32
13,720.42
5,513.90
64190 - Business Licensing and Fees
291.70
0.00
291.70
64300 - Depreciation Expense
8,817.85
12,318.36
(3,500.51)
64600 - Business Meals/Entertainment
6,828.63
7,040.84
(212.21)
Total Operating Expenses
154,291.73
115,759.75
38,531.98
Office Lease and Expenses
62100 - Office Lease
70,134.93
75,125.53
(4,990.60)
62110 - Office Repairs and Maintenance
3,423.91
2,330.30
1,093.61
Total Office Lease and Expenses
73,558.84
77,455.83
(3,896.99)
Insurance
63200 - Workers Compensation Insurance
4,419.54
6,717.08
(2,29754)
VISIT ew ort
A EACH Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2020
Year To Date
Year To Date
02/29/2020
02/28/2019
$ Variance Year over
63300 - Board of Directors Insurance
3,594.51
7,242.00
(3,647.49)
Total Insurance
8,014.05
13,959.08
(5,945.03)
Professional Fees
64203 - Recruiting Fees
0.00
4,900.00
(4,900.00)
64205 - Payroll Processing Service
2,634.16
2,410.88
223.28
64206 - Independent Contractors
20,350.00
3,600.00
16,750.00
67004 - Marketing NBCo Fees
54,000.00
36,000.00
18,000.00
64201- Audit Fees
450.00
10,450.00
(10,000.00)
64202 - Tax Preparation Fees
(1,000.00)
1,300.00
(2,300.00)
64204 - Legal Fees
0.00
5,200.00
(5,200.00)
Total Professional Fees
76,434.16
63,860.88
12,573.28
Travel Expenses
65100 - Airfare
4,850.04
1,492.00
3,358.04
65200-Accommodations
5,086.31
7,146.49
(2,060.18)
65300 - Meals
369.96
749.61
(379.65)
65400 - Transportation Costs
1,871.63
1,936.42
(64.79)
65500 - Other Travel Costs
215.00
45.00
170.00
Total Travel Expenses
12,392.94
11,369.52
1,023.42
Total General and Administrative
324,691.72
282,405.06
42,286.66
Advertising Expenses
66101- Advertising - Purchased
65,255.00
38,926.05
26,328.95
66121- Promotional Gift Cards
76,657.65
17,507.70
59,149.95
66123 - Promotional Client Gifts
22,291.11
25,798.51
(3,507.40)
66203 - Creative Design/Development
52,848.36
22,028.12
30,820.24
Total Advertising Expenses
217,052.12
104,260.38
112,791.74
Marketing Expenses
Community Relations
67103 - Community Partner Events
6,500.00
0.00
6,500.00
67101- Research
1,500.00
1,690.00
(190.00)
67104 - Annual Marketing Outlook Event
74,984.71
0.00
74,984.71
67108 - Company -Sponsored Events
0.00
1,250.00
(1,250.00)
Total Community Relations
82,984.71
2,940.00
80,044.71
Marketing Collateral
67311- Collateral Production Expenses
0.00
939.15
(939.15)
Total Marketing Collateral
0.00
939.15
(939.15)
Digital Marketing
67508 - Website Redesign Expenses
12,251.24
0.00
12,251.24
66211- CRM Maintenance
39,208.33
9,000.00
30,208.33
Total Digital Marketing
51,459.57
9,000.00
42,459.57
Communications/Public Relations
67605 - Media Special Programs
1,939.98
3,417.83
(1,477.85)
Total Communications/Public Relations
1,939.98
3,417.83
(1,477.85)
Total Marketing Expenses
136,384.26
16,296.98
120,087.28
International Marketing Initiatives
67401- International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67411- International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
68,782.35
(68,782.35)
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
43,170.78
42,862.48
308.30
VISIT ew ort
A EACH Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for February 2020
Year To Date Year To Date
02/29/2020 02/28/2019
$ Variance Year over
66222 - Trade Show Registration
178,370.21
131,928.06
46,442.15
66223 - Trade Show Booth Expenses
178,426.66
90,818.94
87,607.72
Total Trade Show Expense
399,967.65
265,609.48
134,358.17
Sponsorships
66231- Sales Group Enhancement Credit
280,591.31
275,127.64
5,463.67
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
81,353.74
66,976.66
14,377.08
66234 - Industry Sponsorships
13,744.49
80,475.33
(66,730.84)
Total Sponsorships
375,689.54
454,117.16
(78,427.62)
Sales Initiatives
66207 - Site Inspections
34,976.72
30,961.60
4,015.12
66208 - Client Events
45,565.23
58,076.98
(12,511.75)
66210 - Conference Services
165.55
32.27
133.28
66209 - Database/Prospecting
95,758.93
73,836.68
21,922.25
Total Sales Initiatives
176,466.43
162,907.53
13,558.90
Total Direct Sales Initiatives
952,123.62
882,634.17
69,489.45
Customized Destination Support
66243 - Hotel Partner Booking Incentives
160,418.61
183,384.11
(22,965.50)
66247 - Partner Engagement Expenses
10,755.82
3,619.44
7,136.38
66248 - Group Marketing Initiatives
54,282.59
63,289.94
(9,007.35)
Total Customized Destination Support
225,457.02
250,293.49
(24,836.47)
Total Expenses
2,830,129.92
2,452,834.30
377,295.62
Net Income
491,657.42
547,974.40
(56,316.98)
VISIT ew ort
41
/E A C Lk Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2020
Year To Date Year To Date
01/31/2020 01/31/2019
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
2,987,652.16
2,697,027.20
290,624.96
Total Revenue
2,987,652.16
2,697,027.20
290,624.96
Other Income
46001 - Interest Income
1,829.27
1,410.26
419.01
Total Other Income
1,829.27
1,410.26
419.01
Total Operating Revenue
2,989,481.43
2,698,437.46
291,043.97
Expenses
Salary and Wages
61010 - Salaries and Wages
603,119.67
548,896.65
54,223.02
61015 - Bonuses and Commissions
58,805.44
67,722.82
(8,917.38)
61020 - Auto Allowance
9,665.00
9,820.00
(155.00)
61030 - Payroll Tax Expenses
50,205.97
47,464.71
2,741.26
Total Salary and Wages
721,796.08
673,904.18
47,891.90
Benefits
61110 - Medical Insurance
67,916.21
53,269.95
14,646.26
61115 - Benefit Administrative Fees
175.91
84.00
91.91
61120 - Dental Insurance
4,536.90
4,246.60
290.30
61125 - Vision Insurance
802.97
724.00
78.97
61130 - Life and Disability
10,142.43
8,348.86
1,793.57
61140 - Retirement Plan (401k)
52,508.86
43,011.86
9,497.00
61150 - Flexible Spending Plan
1,320.69
(621.23)
1,941.92
61160 - Employee Engagement Benefit
6,074.35
3,491.69
2,582.66
Total Benefits
143,478.32
112,555.73
30,922.59
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
4,808.74
7,744.56
(2,935.82)
64101 - Kitchen Supplies
2,924.11
0.00
2,924.11
64110 - Office Equipment Leases
535.18
2,006.90
(1,471.72)
64115 - Office Equipment (non-deprec)
2,032.62
1,130.34
902.28
64120 - Equipment Repairs & Maintenance
13,215.25
9,644.43
3,570.82
64125 - Computer Software (non-deprec)
7,297.00
4,693.83
2,603.17
64130 - Voice and Data - Office
3,440.54
3,387.30
53.24
64135 - Telephone - Mobile
5,305.28
6,073.98
(768.70)
64140 - Postage
0.00
1,388.82
(1,388.82)
64145 - Shipping Charges
1,773.36
880.79
892.57
64150 - Bank Fees
15.00
0.00
15.00
64160 - Membership Dues
39,979.63
21,362.52
18,617.11
64165 - Subscriptions
80.25
346.43
(266.18)
64170 - Team Meetings
20,414.81
4,676.11
15,738.70
64175 - Governance Meeting Expenses
9,255.97
527.98
8,727.99
64180 - Education
19,234.32
11,305.00
7,929.32
64190 - Business Licensing and Fees
291.70
0.00
291.70
VISIT ew ort
/� EACI
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64203 - Recruiting Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201 - Audit Fees
64202 - Tax Preparation Fees
64204 - Legal Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.58/mile 2019)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66202 - Ad Production
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
67104 - Annual Marketing Outlook Event
67108 - Company -Sponsored Events
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2020
Year To Date Year To Date
01/31/2020 01/31/2019
$ Variance Year over
7,914.51
10,778.56
(2,864.05)
5,959.19
6,692.62
(733.43)
144,477.46
92,640.17
51,837.29
70,134.93
65,663.13
4,471.80
2,671.37
1,960.00
711.37
72,806.30
67,623.13
5,183.17
4,419.54
6,063.08
(1,643.54)
3,594.51
7,242.00
(3,647.49)
8,014.05
13,305.08
(5,291.03)
0.00
4,900.00
(4,900.00)
2,340.90
2,274.00
66.90
17,100.00
3,600.00
13,500.00
54,000.00
36,000.00
18,000.00
450.00
10,450.00
(10,000.00)
(1,000.00)
0.00
(1,000.00)
0.00
5,200.00
(5,200.00)
72,890.90
62,424.00
10,466.90
4,850.04
898.38
3,951.66
4,613.87
6,300.50
(1,686.63)
369.96
580.07
(210.11)
1,865.63
1,252.60
613.03
0.00
265.75
(265.75)
110.00
39.00
71.00
11,809.50
9,336.30
2,473.20
309,998.21
245,328.68
64,669.53
65,255.00
36,908.55
28,346.45
53,570.20
17,507.70
36,062.50
21,703.04
25,692.47
(3,989.43)
0.00
2,017.50
(2,017.50)
39,159.22
22,028.12
17,131.10
179,687.46
104,154.34
75,533.12
6,500.00
1,500.00
74,984.71
0.00
82,984.71
0.00
0.00
0.00
1,690.00
0.00
1,250.00
2,940.00
939.15
939.1.5
6,500.00
(190.00)
74,984.71
(1,250.00)
80,044.71
(939.15)
(939.15)
VIS41
=41;�E
ort
A C > L Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for January 2020
Digital Marketing
Year To Date Year To Date
01/31/2020 01/31/2019
$ Variance Year over
67508 - Website Redesign Expenses
10,039.21
0.00
10,039.21
66211 - CRM Maintenance
39,208.33
7,875.00
31,333.33
Total Digital Marketing
49,247.54
7,875.00
41,372.54
Communications/Public Relations
67605 - Media Special Programs
1,939.98
3,378.80
(1,438.82)
Total Communications/Public Relations
1,939.98
3,378.80
(1,438.82)
Total Marketing Expenses
134,172.23
15,132.95
119,039.28
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67411 - International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
68,782.35
(68,782.35)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
33,370.77
39,368.96
(5,998.19)
66222 - Trade Show Registration
171,380.21
126,134.06
45,246.15
66223 - Trade Show Booth Expenses
150,728.93
60,147.49
90,581.44
Total Trade Show Expense
355,479.91
225,650.51
129,829.40
Sponsorships
66231 - Sales Group Enhancement Credit
248,846.21
242,211.49
6,634.72
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
71,353.74
56,083.71
15,270.03
66234 - Industry Sponsorships
13,494.49
75,475.33
(61,980.84)
Total Sponsorships
333,694.44
405,308.06
(71,613.62)
Sales Initiatives
66207 - Site Inspections
33,860.83
24,405.21
9,455.62
66208 - Client Events
38,202.67
56,305.36
(18,102.69)
66210 - Conference Services
165.55
32.27
133.28
66209 - Database/Prospecting
92,258.93
66,257.10
26,001.83
Total Sales Initiatives
164,487.98
146,999.94
17,488.04
Total Direct Sales Initiatives
853,662.33
777,958.51
75,703.82
Customized Destination Support
66243 - Hotel Partner Booking Incentives
134,420.61
171,834.11
(37,413.50)
66244 - Client Events/Relations
0.00
2,311.67
(2,311.67)
66247 - Partner Engagement Expenses
9,310.37
1,219.51
8,090.86
66248 - Group Marketing Initiatives
37,621.77
59,611.03
(21,989.26)
Total Customized Destination Support
181,352.75
234,976.32
(53,623.57)
Total Expenses
2,524,147.38
2,232,793.06
291,354.32
Net Income
465,334.05
465,644.40
(310.35)
Company Name: 400--Visit Newport Beach Inc. Group Sales
Report Name: Check Register
Created On: 1/17/2020
Bank Date
Payee
Document No
Amount
Cleared
TBIDChecking - Union Bank NA Account No: xxxxxxxx5482
10/2/2019
V01750--National Investor Relations Institute
1126
$
1,259.12
11/29/2019
10/2/2019
V01750--National Investor Relations Institute
Voided - 6752
$
(1,259.12)
10/31/2019
10/3/2019
V00423--Franchise Tax Board
PP 09/13/19-Hoy
$
200.00
10/31/2019
10/3/2019
V00526--Hyatt Regency Newport Beach
6954
$
1,500.00
10/31/2019
10/3/2019
V00767--Newport Beach Bayview Marriott
6948
$
500.00
10/31/2019
10/3/2019
V00947--Hyatt Regency John Wayne Airport NB
6947
$
1,000.00
In Transit
10/3/2019
V00553--Fashion Island Hotel
6946
$
500.00
10/31/2019
10/3/2019
V01620--Lido House, LLC
6945
$
2,000.00
10/31/2019
10/3/2019
V01564--Standard Insurance RAS Executive
6953
$
649.82
10/31/2019
10/3/2019
V01563--Standard Insurance Company
6952
$
546.53
10/31/2019
10/3/2019
V00553--Fashion Island Hotel
6950
$
1,000.00
10/31/2019
10/3/2019
V00553--Fashion Island Hotel
6944
$
1,000.00
10/31/2019
10/3/2019
V00102--Balboa Bay Resort
6940
$
3,000.00
10/31/2019
10/3/2019
V00526--Hyatt Regency Newport Beach
6939
$
4,250.00
10/31/2019
10/3/2019
V00102--Balboa Bay Resort
6949
$
500.00
10/31/2019
10/3/2019
V00918--Premier Displays and Exhibits
6941
$
979.20
10/31/2019
10/3/2019
V01094--Strategic Database Research
6943
$
3,500.00
10/31/2019
10/3/2019
V01474--Renaissance Newport Beach
6938
$
3,000.00
10/31/2019
10/3/2019
V01774--Megan Allday
6942
$
606.60
10/31/2019
10/3/2019
V01498--Newport Beach Country Club*
6951
$
460.00
10/31/2019
10/3/2019
V00604--Kim Kelley Productions
1127
$
2,400.00
10/31/2019
10/4/2019
V00791--Noble Studios
6957
$
27,225.00
In Transit
10/4/2019
V01038--Skyward Technical Solutions
6961
$
4,771.59
10/31/2019
10/4/2019
V00302--Cvent, Inc.
6956
$
977.27
10/31/2019
10/4/2019
V00773--Newport Beach Marriott Hotel and Spa
6959
$
1,539.50
10/31/2019
10/4/2019
V00773--Newport Beach Marriott Hotel and Spa
6955
$
2,500.00
10/31/2019
10/4/2019
V00773--Newport Beach Marriott Hotel and Spa
6958
$
2,500.00
10/31/2019
10/4/2019
V00767--Newport Beach Bayview Marriott
6962
$
525.45
10/31/2019
10/4/2019
V00440--Garcia Insurance
6960
$
290.80
10/31/2019
10/7/2019
V01143--The Irvine Company, LLC
1019 Ste130 Lea
$
10,099.85
10/31/2019
10/7/2019
V00150--Blue Shield of California
10/19 Blueshiel
$
7,275.41
10/31/2019
10/10/2019
V01474--Renaissance Newport Beach
6974
$
1,000.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6972
$
500.00
10/31/2019
10/10/2019
V00553--Fashion Island Hotel
6977
$
1,000.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6985
$
500.00
10/31/2019
10/10/2019
V00526--Hyatt Regency Newport Beach
6984
$
1,500.00
10/31/2019
10/10/2019
V00553--Fashion Island Hotel
6983
$
1,500.00
10/31/2019
10/10/2019
V00102--Balboa Bay Resort
6968
$
1,000.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6964
$
2,000.00
10/31/2019
10/10/2019
V01474--Renaissance Newport Beach
6963
$
1,500.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6967
$
1,250.00
10/31/2019
10/10/2019
V00767--Newport Beach Bayview Marriott
6973
$
500.00
In Transit
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6976
$
500.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6982
$
1,500.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6986
$
1,500.00
10/31/2019
10/10/2019
V00526--Hyatt Regency Newport Beach
6966
$
1,000.00
10/31/2019
10/10/2019
V00553--Fashion Island Hotel
6981
$
500.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6975
$
2,000.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6987
$
1,500.00
10/31/2019
10/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6980
$
1,000.00
10/31/2019
10/10/2019
V01649--California Travel Association
6971
$
4,000.00
12/31/2019
10/10/2019
V00708--MIC of Colorado
6965
$
12,000.00
10/31/2019
10/10/2019
V00545--Interior Plantscapes
6979
$
35.00
10/31/2019
10/10/2019
V00553--Fashion Island Hotel
6970
$
250.00
10/31/2019
10/10/2019
V00553--Fashion Island Hotel
6978
$
350.00
10/31/2019
10/10/2019
V00526--Hyatt Regency Newport Beach
6969
$
2,894.34
10/31/2019
10/11/2019
V00423--Franchise Tax Board
PP 09/27/19-Hoy
$
200.00
10/31/2019
10/15/2019
V01117--TASC
PPE10/5/19TASC
$
646.11
10/31/2019
10/16/2019
V01190--Transamerica Retirement Solutions
PPE 10/11/2019
$
5,975.40
10/31/2019
10/21/2019
V00102--Balboa Bay Resort
6993
$
800.00
In Transit
10/21/2019
V00526--Hyatt Regency Newport Beach
6991
$
2,000.00
11/29/2019
Company Name: 400--Visit Newport Beach Inc. Group Sales
Report Name: Check Register
Created On: 1/17/2020
Bank Date
Payee
Document No
Amount
Cleared
TBIDChecking - Union Bank NA Account No: xxxxxxxx5482
10/21/2019
V00553--Fashion Island Hotel
6990
$
5,251.90
10/31/2019
10/21/2019
V00553--Fashion Island Hotel
6992
$
1,500.00
10/31/2019
10/21/2019
V00553--Fashion Island Hotel
6988
$
1,000.00
10/31/2019
10/21/2019
V00267--Conference Direct
6989
$
42,535.00
10/31/2019
10/22/2019
V01740--Choice Builder
11/19Dent/VisTB
$
647.43
10/31/2019
10/23/2019
V00423--Franchise Tax Board
PP 10/11/2019-H
$
200.00
10/31/2019
10/23/2019
V01564--Standard Insurance RAS Executive
6994
$
649.82
10/31/2019
10/23/2019
V00767--Newport Beach Bayview Marriott
6995
$
1,000.00
11/29/2019
10/23/2019
V00773--Newport Beach Marriott Hotel and Spa
6996
$
500.00
11/29/2019
10/24/2019
V01785--Charles Schwab & Co., Inc
1128
$400,000.00
10/31/2019
10/28/2019
V01117--TASC
PPE 10/19/19TAS
$
646.11
10/31/2019
10/30/2019
V00604--Kim Kelley Productions
1129
$
2,400.00
10/31/2019
10/30/2019
V00102--Balboa Bay Resort
7005
$
1,500.00
11/29/2019
10/30/2019
V00553--Fashion Island Hotel
7014
$
3,000.00
11/29/2019
10/30/2019
V00553--Fashion Island Hotel
6998
$
3,000.00
11/29/2019
10/30/2019
V00526--Hyatt Regency Newport Beach
7009
$
2,000.00
11/29/2019
10/30/2019
V00553--Fashion Island Hotel
7013
$
3,000.00
11/29/2019
10/30/2019
V00773--Newport Beach Marriott Hotel and Spa
7000
$
6,000.00
11/29/2019
10/30/2019
V00773--Newport Beach Marriott Hotel and Spa
7011
$
1,000.00
11/29/2019
10/30/2019
V01563--Standard Insurance Company
7008
$
546.53
11/29/2019
10/30/2019
V00773--Newport Beach Marriott Hotel and Spa
7003
$
1,900.00
11/29/2019
10/30/2019
V00102--Balboa Bay Resort
7007
$
250.00
11/29/2019
10/30/2019
V00526--Hyatt Regency Newport Beach
7002
$
1,200.00
11/29/2019
10/30/2019
V00553--Fashion Island Hotel
6999
$
1,000.00
11/29/2019
10/30/2019
V00553--Fashion Island Hotel
7006
$
1,500.00
11/29/2019
10/30/2019
V00773--Newport Beach Marriott Hotel and Spa
7010
$
500.00
11/29/2019
10/30/2019
V00973--Robert Downs Photography
7004
$
2,500.00
11/29/2019
10/30/2019
V00553--Fashion Island Hotel
6997
$
1,000.00
11/29/2019
10/30/2019
V00767--Newport Beach Bayview Marriott
7012
$
500.00
11/29/2019
10/30/2019
V00882--Pedego Corona Del Mar
7001
$
242.43
11/29/2019
10/31/2019
V01190--Transamerica Retirement Solutions
PPE10/25/19 401
$
5,471.04
10/31/2019
11/1/2019
V01786--LEC
7015
$
500.00
11/29/2019
11/1/2019
V01787--Prodata Imaging Inc
7016
$
94.27
11/29/2019
11/4/2019
V01038--Skyward Technical Solutions
7018
$
1,956.72
11/29/2019
11/4/2019
V00608--KMJ Corbin and Co.
7017
$
6,000.00
11/29/2019
11/5/2019
V01143--The Irvine Company, LLC
1119 Ste130 Lea
$
10,099.85
11/29/2019
11/6/2019
V00423--Franchise Tax Board
PP 10/25/2019-H
$
200.00
11/29/2019
11/6/2019
V00130--Best Chauffeured Worldwide
7023
$
114.36
11/29/2019
11/6/2019
V01094--Strategic Database Research
7019
$
3,500.00
11/29/2019
11/6/2019
V00767--Newport Beach Bayview Marriott
7021
$
581.95
11/29/2019
11/6/2019
V00553--Fashion Island Hotel
7022
$
1,128.86
11/29/2019
11/6/2019
V01788--HearX West
7024
$
500.00
11/29/2019
11/6/2019
V01498--Newport Beach Country Club*
7020
$
460.00
11/29/2019
11/7/2019
V00150--Blue Shield of California
1.9287E+11
$
7,275.41
11/29/2019
11/12/2019
V01117--TASC
PPE11/02/19TAS
$
646.11
11/29/2019
11/12/2019
V00423--Franchise Tax Board
1130
$
10.00
11/29/2019
11/13/2019
V01190--Transamerica Retirement Solutions
PPE 11/8/2019 4
$
5,471.04
11/29/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7049
$
200.00
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7051
$
2,188.94
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7056
$
339.68
In Transit
11/14/2019
V00920--Prestige Concepts Promotion and Events
7055
$
3,060.82
In Transit
11/14/2019
V00920--Prestige Concepts Promotion and Events
7052
$
1,200.12
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7048
$
2,273.40
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7054
$
514.03
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7053
$
4,172.66
In Transit
11/14/2019
V00920--Prestige Concepts Promotion and Events
7050
$
1,827.88
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7047
$
113.31
In Transit
11/14/2019
V00920--Prestige Concepts Promotion and Events
7045
$
3,845.43
12/31/2019
11/14/2019
V00920--Prestige Concepts Promotion and Events
7046
$
1,476.02
12/31/2019
11/14/2019
V00553--Fashion Island Hotel
7034
$
500.00
11/29/2019
11/14/2019
V01713--Northeast CVB Reps
7044
$
450.00
11/29/2019
Company Name: 400--Visit Newport Beach Inc. Group Sales
Report Name: Check Register
Created On: 1/17/2020
Bank Date
Payee Document No
Amount
Cleared
TBIDChecking - Union Bank NA Account No: xxxxxxxx5482
11/14/2019
V00553--Fashion Island Hotel
7025
$
1,000.00
11/29/2019
11/14/2019
V00553--Fashion Island Hotel
7029
$
1,000.00
11/29/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7036
$
1,000.00
12/31/2019
11/14/2019
V00553--Fashion Island Hotel
7027
$
1,000.00
11/29/2019
11/14/2019
V00526--Hyatt Regency Newport Beach
7033
$
1,000.00
12/31/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7035
$
1,000.00
12/31/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7040
$
1,500.00
12/31/2019
11/14/2019
V00526--Hyatt Regency Newport Beach
7043
$
1,500.00
12/31/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7028
$
1,500.00
12/31/2019
11/14/2019
V00553--Fashion Island Hotel
7042
$
1,500.00
11/29/2019
11/14/2019
V00526--Hyatt Regency Newport Beach
7039
$
500.00
12/31/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7038
$
500.00
12/31/2019
11/14/2019
V00102--Balboa Bay Resort
7026
$
500.00
11/29/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7041
$
500.00
12/31/2019
11/14/2019
V00545--Interior Plantscapes
7032
$
35.00
11/29/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7031
$
500.00
12/31/2019
11/14/2019
V00773--Newport Beach Marriott Hotel and Spa
7030
$
500.00
12/31/2019
11/14/2019
V00553--Fashion Island Hotel
7037
$
500.00
11/29/2019
11/18/2019
V00130--Best Chauffeured Worldwide Voided
- 7057
$
(585.57)
11/29/2019
11/18/2019
V00130--Best Chauffeured Worldwide
7057
$
585.57
11/29/2019
11/21/2019
V00423--Franchise Tax Board PP 11/08/2019-H
$
200.00
11/29/2019
11/21/2019
V00130--Best Chauffeured Worldwide
7058
$
585.57
12/31/2019
11/21/2019
V01740--Choice Builder 12/19 Dental/
$
647.43
11/29/2019
11/25/2019
V01117--TASC PPE11/16/19TAS
$
646.11
11/29/2019
11/26/2019
V00918--Premier Displays and Exhibits
7062
$
21,881.71
12/31/2019
11/26/2019
V00526--Hyatt Regency Newport Beach
7063
$
2,842.40
12/31/2019
11/26/2019
V00767--Newport Beach Bayview Marriott
7065
$
300.00
12/31/2019
11/26/2019
V00767--Newport Beach Bayview Marriott
7064
$
500.00
12/31/2019
11/26/2019
V01474--Renaissance Newport Beach
7061
$
880.24
12/31/2019
11/26/2019
V01030--Simpleview, Inc.
7060
$
7,500.00
12/31/2019
11/26/2019
V01585--Destinations International
7059
$
5,800.00
12/31/2019
11/27/2019
V01190--Transamerica Retirement Solutions PPE 11/22/2019
$
5,471.04
11/29/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided
- 7054
$
(514.03)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided
- 7052
$
(1,200.12)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided
- 7051
$
(2,188.94)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided - 7050
$
(1,827.88)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided - 7049
$
(200.00)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided
- 7048
$
(2,273.40)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided
- 7046
$
(1,476.02)
12/31/2019
12/1/2019
V00920--Prestige Concepts Promotion and Events Voided
- 7045
$
(3,845.43)
12/31/2019
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7089
$
500.00
12/31/2019
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7090
$
1,000.00
12/31/2019
12/4/2019
V01038--Skyward Technical Solutions
7084
$
1,445.00
12/31/2019
12/4/2019
V01797--Spark Branding House, INC
7087
$
8,000.00
12/31/2019
12/4/2019
V00918--Premier Displays and Exhibits
7082
$
15,376.88
12/31/2019
12/4/2019
V00526--Hyatt Regency Newport Beach
7080
$
1,000.00
12/31/2019
12/4/2019
V00102--Balboa Bay Resort
7081
$
1,500.00
12/31/2019
12/4/2019
V00526--Hyatt Regency Newport Beach
7085
$
750.00
12/31/2019
12/4/2019
V00526--Hyatt Regency Newport Beach
7086
$
6,000.00
12/31/2019
12/4/2019
V00526--Hyatt Regency Newport Beach
7079
$
1,000.00
12/31/2019
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7078
$
1,000.00
12/31/2019
12/4/2019
V00102--Balboa Bay Resort
7088
$
500.00
12/31/2019
12/4/2019
V00553--Fashion Island Hotel
7083
$
1,500.00
12/31/2019
12/4/2019
V01143--The Irvine Company, LLC 1219 Ste130 Lea
$
10,099.85
12/31/2019
12/4/2019
V01563--Standard Insurance Company
7077
$
546.53
12/31/2019
12/4/2019
V00545--Interior Plantscapes
7071
$
35.00
12/31/2019
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7068
$
500.00
12/31/2019
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7076
$
1,000.00
12/31/2019
12/4/2019
V01094--Strategic Database Research
7073
$
3,500.00
12/31/2019
12/4/2019
V00553--Fashion Island Hotel
7070
$
1,000.00
12/31/2019
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7066
$
1,500.00
12/31/2019
Company Name: 400--Visit Newport Beach Inc. Group Sales
Report Name: Check Register
Created On: 1/17/2020
Bank Date
Payee
Document No
Amount
Cleared
TBIDChecking - Union Bank NA Account No: xxxxxxxx5482
12/4/2019
V00773--Newport Beach Marriott Hotel and Spa
7072
$
500.00
12/31/2019
12/4/2019
V00526--Hyatt Regency Newport Beach
7075
$
1,000.00
12/31/2019
12/4/2019
V00604--Kim Kelley Productions
7074
$
2,400.00
12/31/2019
12/4/2019
V01498--Newport Beach Country Club*
7067
$
595.93
12/31/2019
12/4/2019
V00553--Fashion Island Hotel
7069
$
1,500.00
12/31/2019
12/5/2019
V00150--Blue Shield of California
12/19 BlueShiel
$
7,275.41
12/31/2019
12/9/2019
V00608--KMJ Corbin and Co.
7092
$
1,600.00
12/31/2019
12/9/2019
V00920--Prestige Concepts Promotion and Events
7091
$
13,525.82
12/31/2019
12/10/2019
V00102--Balboa Bay Resort
7114
$
1,500.00
12/31/2019
12/10/2019
V01800--Susan Leshan
7113
$
596.60
12/31/2019
12/10/2019
V01474--Renaissance Newport Beach
7118
$
1,000.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7109
$
2,000.00
12/31/2019
12/10/2019
V00526--Hyatt Regency Newport Beach
7117
$
2,000.00
12/31/2019
12/10/2019
V00947--Hyatt Regency John Wayne Airport NB
7100
$
500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7122
$
1,000.00
12/31/2019
12/10/2019
V00526--Hyatt Regency Newport Beach
7121
$
3,500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7105
$
2,500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7112
$
500.00
12/31/2019
12/10/2019
V00553--Fashion Island Hotel
7094
$
1,000.00
12/31/2019
12/10/2019
V00526--Hyatt Regency Newport Beach
7093
$
500.00
12/31/2019
12/10/2019
V00553--Fashion Island Hotel
7120
$
1,000.00
12/31/2019
12/10/2019
V00102--Balboa Bay Resort
7099
$
2,000.00
12/31/2019
12/10/2019
V00526--Hyatt Regency Newport Beach
7111
$
2,000.00
12/31/2019
12/10/2019
V01474--Renaissance Newport Beach
7104
$
500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7098
$
1,500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7097
$
2,500.00
12/31/2019
12/10/2019
V00553--Fashion Island Hotel
7096
$
1,000.00
12/31/2019
12/10/2019
V01620--Lido House, LLC
7103
$
1,000.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7108
$
1,500.00
12/31/2019
12/10/2019
V01474--Renaissance Newport Beach
7119
$
500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7116
$
1,500.00
12/31/2019
12/10/2019
V00553--Fashion Island Hotel
7107
$
1,500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7106
$
5,500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7095
$
2,500.00
12/31/2019
12/10/2019
V00773--Newport Beach Marriott Hotel and Spa
7102
$
500.00
12/31/2019
12/10/2019
V00526--Hyatt Regency Newport Beach
7110
$
5,774.00
12/31/2019
12/10/2019
V01225--US Travel Association
7101
$
29,270.00
12/31/2019
12/10/2019
V01030--Simpleview, Inc.
7115
$
1,458.33
12/31/2019
12/10/2019
V01190--Transamerica Retirement Solutions
PPE 12/06/2019
$
5,469.45
12/31/2019
12/10/2019
V01377--Newport Beach and Company
Q2_FY20 Marketi
$
27,000.00
12/31/2019
12/10/2019
V01117--TASC
PPE12/6/19TASC
$
646.18
12/31/2019
12/10/2019
V00267--Conference Direct
1131
$
14,785.00
12/31/2019
12/11/2019
V00423--Franchise Tax Board
PP 11/22/2019-H
$
200.00
12/31/2019
12/13/2019
V01564--Standard Insurance RAS Executive
7127
$
649.82
12/31/2019
12/13/2019
V00947--Hyatt Regency John Wayne Airport NB
7126
$
2,000.00
12/31/2019
12/13/2019
V00767--Newport Beach Bayview Marriott
7125
$
500.00
In Transit
12/13/2019
V00553--Fashion Island Hotel
7123
$
208.61
12/31/2019
12/13/2019
V01156--The Power to Restore
7124
$
855.00
In Transit
12/18/2019
V00767--Newport Beach Bayview Marriott
7138
$
678.00
In Transit
12/18/2019
V00526--Hyatt Regency Newport Beach
7139
$
2,411.95
12/31/2019
12/18/2019
V01474--Renaissance Newport Beach
7129
$
1,000.00
In Transit
12/18/2019
V01802--Coalition for Adequate School Housing
7128
$
750.00
12/31/2019
12/18/2019
V00773--Newport Beach Marriott Hotel and Spa
7135
$
1,000.00
In Transit
12/18/2019
V00773--Newport Beach Marriott Hotel and Spa
7130
$
1,000.00
In Transit
12/18/2019
V00773--Newport Beach Marriott Hotel and Spa
7134
$
1,000.00
In Transit
12/18/2019
V00773--Newport Beach Marriott Hotel and Spa
7137
$
1,000.00
In Transit
12/18/2019
V00773--Newport Beach Marriott Hotel and Spa
7133
$
500.00
In Transit
12/18/2019
V00773--Newport Beach Marriott Hotel and Spa
7136
$
1,000.00
In Transit
12/18/2019
V01080--Stamats Meeting Media, Inc
7132
$
1,660.00
12/31/2019
12/18/2019
V00169--Bright Business Media LLC
7131
$
6,000.00
12/31/2019
12/19/2019
V00423--Franchise Tax Board
PP 12/6/2019-Ho
$
200.00
12/31/2019
Company Name: 400--Visit Newport Beach Inc. Group Sales
Report Name: Check Register
Created On: 1/17/2020
Bank Date
Payee
TBIDChecking - Union Bank NA Account No: xxxxxxxx5482
12/19/2019
V00773--Newport
Beach Marriott Hotel and Spa
12/19/2019
V00767--Newport
Beach Bayview Marriott
12/23/2019
V01740--Choice
Builder
12/23/2019
V01117--TASC
12/23/2019
V00918--Premier
Displays and Exhibits
12/23/2019
V00102--Balboa
Bay Resort
12/24/2019
V01190--Transamerica
Retirement Solutions
12/30/2019
V00604--Kim
Kelley Productions
12/30/2019
V01807--MPI
MAC
Total for TBIDChecking
Document No Amount Cleared
7141 $
7140 $
1/20 Dental/Vis $
PPE 12/14/19TAS $
7143 $
7142 $
PPE12/20/2019 $
7144 $
7145 S
461.85 In Transit
265.55 In Transit
647.43 12/31/2019
647.00 12/31/2019
979.20 12/31/2019
1,000.00 In Transit
5,463.45 12/31/2019
2,400.00 In Transit
850.00 In Transit
�l7iSG�UiSV.,1
VISIT ew ort
/ EACH
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
46001 - Interest Income
Total Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for December 2019
Year To Date Year To Date
12/31/2019 12/31/2018
2,656,227.11 2,386,369.52
2,656,227.11 2,386,369.52
591.53 1,385.59
591.53 1,385.59
2,656,818.64 2,387,755.11
494,079.93
442,929.56
28,107.44
38,795.82
8,245.00
7,855.00
35,391.60
32,958.18
565,823.97
522,538.56
59,684.09
45,538.14
175.91
84.00
4,032.27
3,644.09
709.52
620.71
7,645.63
6,723.43
45,420.71
37,798.14
1,228.10
24.89
6,016.95
3,113.53
124,913.18
97,546.93
4,292.04
6,756.32
2,563.73
0.00
535.18
1,720.20
1,387.45
1,130.34
11,577.75
8,286.93
6,457.00
3,924.17
2,950.91
2,900.40
4,505.28
5,002.05
0.00
1,388.82
1,655.10
880.79
15.00
0.00
38,611.65
18,031.73
80.25
346.43
17,574.85
4,379.39
4,727.98
0.00
13,709.32
5,830.00
291.70
0.00
7,275.87
9,238.76
5,575.82
4,738.85
123,786.88
74,555.18
$ Variance Year over
269,857.59
269,857.59
(794.06)
(794.06)
269,063.53
51,150.37
(10, 688.38)
390.00
2,433.42
43,285.41
14,145.95
91.91
388.18
88.81
922.20
7,622.57
1,203.21
2, 903.42
27,366.25
(2,464,28)
2,563.73
(1,185.02)
257.11
3,290.82
2,532.83
50.51
(496.77)
(1,388,82)
774,31
15,00
20,579,92
(266.18)
13,195.46
4,727.98
7,879.32
291,70
(1,962.89)
836.97
49,231.70
VISIT ew ort
�- Visit Newport Beach, Inc. Group Sales (TBID)
�� EACH
�- Statement of Activities YoY for December 2019
Year To Date
Year To Date
12/31/2019
12/31/2018
$ Variance Year over
Office Lease and Expenses
62100 - Office Lease
60,035.08
56,200.73
3,834.35
62110 - Office Repairs and Maintenance
2,671.37
1,960.00
711.37
Total Office Lease and Expenses
62,706.45
58,160.73
4,545.72
Insurance
63200 - Workers Compensation Insurance
4,419.54
5,431.08
(1,011.54)
63300 - Board of Directors Insurance
3,594.51
7,242.00
(3,647.49)
Total Insurance
8,014.05
12,673.08
(4,659.03)
Professional Fees
64203 - Recruiting Fees
0.00
4,900.00
(4,900.00)
64205 - Payroll Processing Service
1,784.86
1,725.36
59.50
64206 - Independent Contractors
17,100.00
3,200.00
13,900.00
67004 - Marketing NBCo Fees
54,000.00
36,000.00
18,000.00
64201- Audit Fees
450.00
10,450.00
(10,000.00)
64202 - Tax Preparation Fees
(1,000.00)
(1,300.00)
300.00
64204 - Legal Fees
0.00
5,200.00
(5,200.00)
Total Professional Fees
72,334.86
60,175.36
12,159.50
Travel Expenses
65100 - Airfare
4,037.29
637.98
3,399,31
65200 - Accommodations
4,199.89
4,693.14
(493.25)
65300 - Meals
309.14
539.62
(230.48)
65400 - Transportation Costs
1,767.97
987.91
780,06
65405 - Mileage ($0.58/mile 2019)
0.00
265.75
(265.75)
65500 - Other Travel Costs
107.00
14.00
93.00
Total Travel Expenses
10,421.29
7,138.40
3,282.89
Total General and Administrative
277,263.53
212,702.75
64,560.78
Advertising Expenses
66101 - Advertising - Purchased
41,940.00
36,908.55
5,031.45
66121 - Promotional Gift Cards
48,734.45
17,507.70
31,226.75
66123 - Promotional Client Gifts
21,703.04
24,855.41
(3,152.37)
66202 - Ad Production
0.00
2,017.50
(2,017.50)
66203 - Creative Design/Development
39,159.22
20,240.12
18,919.10
Total Advertising Expenses
151,536.71
101,529.28
50,007.43
Marketing Expenses
Community Relations
67103 - Community Partner Events
6,500.00
0.00
6,500.00
67101- Research
1,500.00
1,690.00
(190.00)
67104 - Annual Marketing Outlook Event
74,984.71
0.00
74,984.71
67108 - Company -Sponsored Events
0.00
1,250.00
(1,250.00)
Total Community Relations
82,984.71
2,940.00
80,044.71
Marketing Collateral
67311 - Collateral Production Expenses
0.00
939.15
(939.15)
Total Marketing Collateral
0.00
939.15
(939.15)
Digital Marketing
67508 - Website Redesign Expenses
7,827.18
0.00
7,827.18
66211 - CRM Maintenance
31,458.33
6,750.00
24,708.33
Total Digital Marketing
39,285.51
6,750.00
32,535.51
Communications/Public Relations
VISIT ew ort
�- Visit Newport Beach, Inc. Group Sales (TBID)
�� EACH
�- Statement of Activities YoY for December 2019
Year To Date
Year To Date
12/31/2019
12/31/2018
$ Variance Year over
67605 - Media Special Programs
1,939.98
2,118.80
(178.82)
Total Communications/Public Relations
1,939.98
2,118.80
(178.82)
Total Marketing Expenses
124,210.20
12,747.95
111,462.25
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
17,500.02
(17,500.02)
67411 - International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
49,962.39
(49,962.39)
Total International Marketing Initiatives
0.00
68,782.35
(68,782.35)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
31,029.49
36,404.77
(5,375.28)
66222 - Trade Show Registration
165,967.21
107,054.06
58,913.15
66223 - Trade Show Booth Expenses
149,708.90
58,318.01
91,390.89
Total Trade Show Expense
346,705.60
201,776.84
144,928.76
Sponsorships
66231- Sales Group Enhancement Credit
181,034.80
196,262.35
(15,227.55)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
43,601.24
47,197.46
(3,596.22)
66234 - Industry Sponsorships
7,494.49
73,153.03
(65,658.54)
Total Sponsorships
232,130.53
348,150.37
(116,019.84)
Sales Initiatives
66207 - Site Inspections
31,745.15
18,113.87
13,631,28
66208 - Client Events
25,815.71
50,723.61
(24,907.90)
66210 - Conference Services
165.55
4.20
161.35
66209 - Database/Prospecting
77,687.58
58,677.52
19,010.06
Total Sales Initiatives
135,413.99
127,519.20
7,894.79
Total Direct Sales Initiatives
714,250.12
677,446.41
36,803.71
Customized Destination Support
66243 - Hotel Partner Booking Incentives
88,740.00
141,286.11
(52,546.11)
66244 - Client Events/Relations
0.00
2,311.67
(2,311.67)
66247 - Partner Engagement Expenses
7,231.10
1,173.51
6,057.59
66248 - Group Marketing Initiatives
34,215.19
52,766.30
(18,551.11)
Total Customized Destination Support
130,186.29
197,537.59
(67,351.30)
Total Expenses
2,088,184.00
1,890,831.82
197,352.18
Net Income
568,634.64
496,923.29
71,711.35
VISI I
Visit Newport Beach, Inc. Group Sales (TBID)
jVE A C H Statement of Activities YoY for November 2019
Year To Date
Year To Date
11/30/2019
11/30/2018
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
2,228,101.56
1,989,385.82
238,715.74
Total Revenue
2,228,101.56
1,989,385.82
238,715.74
Other Income
46001 - Interest Income
536.81
585.07
(48.26)
Total Other Income
536.81
585.07
(48.26)
Total Operating Revenue
2,228,638.37
1,989,970.89
238,667.48
Expenses
Salary and Wages
61010 - Salaries and Wages
411,759.15
369,194.69
42,564.46
61015 - Bonuses and Commissions
22,459.72
33,623.91
(11,164.19)
61020 -Auto Allowance
6,775.00
6,465.00
310.00
61030 - Payroll Tax Expenses
29,971.01
28,126.10
1,844.91
Total Salary and Wages
470,964.88
437,409.70
33,555.18
Benefits
61110 - Medical Insurance
43,673.90
37,806.33
5,867.57
61115 - Benefit Administrative Fees
132.73
42.00
90.73
61120 - Dental Insurance
3,448.00
3,008.70
439.30
61125 - Vision Insurance
607.23
511.82
95.41
61130 - Life and Disability
7,511.10
5,290.33
2,220.77
61140 - Retirement Plan (401k)
38,112.52
32,217.44
5,895.08
61150 - Flexible Spending Plan
1,003.18
(107.03)
1,110.21
61160 - Employee Engagement Benefit
5,233.81
3,057.95
2,175.86
Total Benefits
99,722.47
81,827.54
17,894.93
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
3,786.86
4,232.76
(445.90)
64101 - Kitchen Supplies
1,683.33
0.00
1,683.33
64110 - Office Equipment Leases
356.70
1,433.50
(1,076.80)
64115 - Office Equipment (non-deprec)
1,387.45
1,130.34
257.11
64120 - Equipment Repairs & Maintenance
10,132.75
6,461.25
3,671.50
64125 - Computer Software (non-deprec)
6,283.00
3,454.51
2,828.49
64130 - Voice and Data - Office
2,463.27
2,416.16
47.11
64135 - Telephone - Mobile
3,705.28
4,196.67
(491.39)
64140 - Postage
0.00
1,388.82
(1,388.82)
64145 - Shipping Charges
1,337.16
380.79
956.37
64150 - Bank Fees
15.00
0.00
15.00
64160 - Membership Dues
21,028.88
15,710.90
5,317.98
64165 - Subscriptions
80.25
218.46
(138.21)
64170 - Team Meetings
17,048.66
4,217.34
12,831.32
64175 - Governance Meeting Expenses
4,527.98
0.00
4,527.98
64180 - Education
15,878.92
5,830.00
10,048.92
64190 - Business Licensing and Fees
291.70
0.00
291.70
64300 - Depreciation Expense
6,637.23
4,619.38
2,01785
64600 - Business Meals/Entertainment
4,545.97
4,009.25
536.72
Total Operating Expenses
101,190.39
59,700.13
41,490.26
Office Lease and Expenses
62100 - Office Lease
49,275.23
46,738.32
2,536.91
62110 - Office Repairs and Maintenance
1,971.02
175.00
1,796.02
Total Office Lease and Expenses
51,246.25
46,913.32
4,332.93
Insurance
63200 - Workers Compensation Insurance
4,419.54
1,833.58
2,585.96
VISI I
Visit Newport Beach, Inc. Group Sales (TBID)
jVE A C H Statement of Activities YoY for November 2019
Year To Date
Year To Date
11/30/2019
11/30/2018
$ Variance Year over
63300 - Board of Directors Insurance
3,594.51
7,242.00
(3,64749)
Total Insurance
8,014.05
9,075.58
(1,061.53)
Professional Fees
64203 - Recruiting Fees
0.00
4,900.00
(4,900.00)
64205 - Payroll Processing Service
1,493.90
1,440.10
53.80
64206 - Independent Contractors
14,700.00
3,200.00
11,500.00
67004 - Marketing NBCo Fees
27,000.00
36,000.00
(9,000.00)
64201 -Audit Fees
450.00
10,450.00
(10,000.00)
64202 - Tax Preparation Fees
(1,000.00)
(1,300.00)
300.00
64204 - Legal Fees
0.00
5,200.00
(5,200.00)
Total Professional Fees
42,643.90
59,890.10
(17,246.20)
Travel Expenses
65100 - Airfare
4,037.29
637.98
3,399.31
65200-Accommodations
4,199.89
4,693.14
(493.25)
65300 - Meals
309.14
539.62
(230.48)
65400 - Transportation Costs
1,714.97
981.91
733.06
65405 - Mileage ($0.58/mile 2019)
0.00
106.53
(106.53)
65500 - Other Travel Costs
93.00
14.00
79.00
Total Travel Expenses
10,354.29
6,973.18
3,381.11
Total General and Administrative
213,448.88
182,552.31
30,896.57
Advertising Expenses
66101 - Advertising - Purchased
2,450.00
36,908.55
(34,458.55)
66121 - Promotional Gift Cards
40,307.65
12,757.70
27,549.95
66123 - Promotional Client Gifts
18,628.16
22,394.12
(3,765.96)
66202 - Ad Production
0.00
2,017.50
(2,017.50)
66203 - Creative Design/Development
10,970.17
20,240.12
(9,269.95)
Total Advertising Expenses
72,355.98
94,317.99
(21,962.01)
Marketing Expenses
Community Relations
67103 - Community Partner Events
7,500.00
0.00
7,500.00
67101 - Research
1,500.00
1,690.00
(190.00)
67104 - Annual Marketing Outlook Event
74,984.71
0.00
74,984.71
67108 - Company -Sponsored Events
0.00
1,250.00
(1,250.00)
Total Community Relations
83,984.71
2,940.00
81,044.71
Marketing Collateral
67311 - Collateral Production Expenses
0.00
939.15
(939.15)
Total Marketing Collateral
0.00
939.15
(939.15)
Digital Marketing
67508 - Website Redesign Expenses
5,615.15
0.00
5,615.15
66211 - CRM Maintenance
30,000.00
5,625.00
24,375.00
Total Digital Marketing
35,615.15
5,625.00
29,990.15
Communications/Public Relations
67605 - Media Special Programs
1,939.98
1,908.80
31.18
Total Communications/Public Relations
1,939.98
1,908.80
31.18
Total Marketing Expenses
121,539.84
11,412.95
110,126.89
International Marketing Initiatives
67401 - International Brand Awareness Fees
0.00
14,583.35
(14,583.35)
67411 - International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
39,962.39
(39,962.39)
Total International Marketing Initiatives
0.00
55,865.68
(55,865.68)
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
23,524.44
26,259.89
(2,735.45)
66222 - Trade Show Registration
98,283.96
67,092.06
31,191.90
66223 - Trade Show Booth Expenses
178,364.81
28,923.01
149,441.80
VISI I
Visit Newport Beach, Inc. Group Sales (TBID)
jVE A C H Statement of Activities YoY for November 2019
Year To Date
Year To Date
11/30/2019
11/30/2018
$ Variance Year over
Total Trade Show Expense
300,173.21
122,274.96
177,898.25
Sponsorships
66231 - Sales Group Enhancement Credit
136,341.25
148,892.35
(1$551.10)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
38,312.91
39,331.21
(1,018.30)
66234 - Industry Sponsorships
7,494.49
72,953.03
(65,458.54)
Total Sponsorships
182,148.65
292,714.12
(110,565.47)
Sales Initiatives
66207 - Site Inspections
27,477.77
14,306.38
13,171.39
66208 - Client Events
13,967.49
35,763.98
(21,796.49)
66210 - Conference Services
165.55
4.20
161.35
66209 - Database/Prospecting
74,187.58
40,097.94
34,089.64
Total Sales Initiatives
115,798.39
90,172.50
25,625.89
Total Direct Sales Initiatives
598,120.25
505,161.58
92,958.67
Customized Destination Support
66243 - Hotel Partner Booking Incentives
75,240.00
91,613.31
(16,373.31)
66244 - Client Events/Relations
0.00
2,222.66
(2,222.66)
66247 - Partner Engagement Expenses
6,291.98
1,173.51
5,118.47
66248 - Group Marketing Initiatives
25,567.39
32,266.32
(6,698.93)
Total Customized Destination Support
107,099.37
127,275.80
(20,176.43)
Total Expenses
1,683,251.67
1,495,823.55
187,428.12
Net Income
545,386.70
494,147.34
51,239.36
VISIT e7EA
ort
Visit Newport Beach, Inc. Group Sales (TBID)
0, C H Statement of Activities YoY for October 2019
ti
Year To Date Year To Date
10/31/2019 10/31/2018
$ Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income 1,828,944.56 1,619,039.05 209,905.51
Total Revenue 1,828,944.56 1,619,039.05 209,905.51
Other Income
46001- Interest Income 492.75 529.47 (36.72)
Total Other Income 492.75 529.47 (36.72)
Total Operating Revenue 1,829,437.31 1,619,568.52 209,868.79
Expenses
Salary and Wages
61010 - Salaries and Wages
329,402.54
295,442.25
33,960.29
61015 - Bonuses and Commissions
22,459.72
30,137.91
(7,678.19)
61020 - Auto Allowance
5,305.00
5,075.00
230.00
61030 - Payroll Tax Expenses
24,474.33
22,964.21
1,510.12
Total Salary and Wages
381,641.59
353,619.37
28,022.22
Benefits
61110 - Medical Insurance
34,939.12
30,074.52
4,864.60
61115 - Benefit Administrative Fees
132.73
42.00
90.73
61120 - Dental Insurance
2,863.73
2,373.31
490.42
61125 - Vision Insurance
504.94
402.93
102.01
61130 - Life and Disability
6,180.22
4,689.41
1,490.81
61140 - Retirement Plan (401k)
32,264.57
26,796.14
5,468.43
61150 - Flexible Spending Plan
1,003.18
(107.03)
1,110.21
61160 - Employee Engagement Benefit
4,747.79
2,653.65
2,094.14
Total Benefits
82,636.28
66,924.93
15,711.35
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
2,454.88
3,752.73
(1,297.85)
64101- Kitchen Supplies
1,319.80
0.00
1,319.80
64110 - Office Equipment Leases
321.70
1,146.80
(825.10)
64115 - Office Equipment (non-deprec)
1,387.45
1,130.34
257.11
64120 - Equipment Repairs & Maintenance
8,687.75
5,130.00
3,557.75
64125 - Computer Software (non-deprec)
6,188.50
2,787.38
3,401.12
64130 - Voice and Data - Office
1,964.65
1,925.78
38.87
64135 - Telephone - Mobile
2,905.28
3,357.18
(451.90)
64140 - Postage
0.00
1,388.82
(1,388.82)
64145 - Shipping Charges
1,044.23
229.64
814.59
64150 - Bank Fees
15.00
0.00
15.00
64160 - Membership Dues
18,107.10
12,055.07
6,052.03
64165 - Subscriptions
80.25
218.46
(138.21)
64170 - Team Meetings
16,924.35
4,135.29
12,789.06
64175 - Governance Meeting Expenses
4,527.98
0.00
4,527.98
64180 - Education
8,619.00
5,830.00
2,789.00
64190 - Business Licensing and Fees
281.70
0.00
281.70
64300 - Depreciation Expense
5,998.57
4,619.38
1,379.19
64600 - Business Meals/Entertainment
3,981.89
3,500.09
481.80
Total Operating Expenses
84,810.08
51,206.96
33,603.12
Office Lease and Expenses
62100 - Office Lease
39,175.38
37,275.92
1,899.46
VISIT e7EA
ort
Visit Newport Beach, Inc. Group Sales (TBID)
0, C H Statement of Activities YoY for October 2019
ti
Year To Date Year To Date
10/31/2019 10/31/2018
$ Variance Year over
62110 - Office Repairs and Maintenance 1,081.02 140.00 941.02
Total Office Lease and Expenses 40,256.40 37,415.92 2,840.48
Insurance
63200 - Workers Compensation Insurance 4,419.54 1,380.08 3,039.46
63300 - Board of Directors Insurance 3,594.51 7,242.00 (3,647.49)
Total Insurance 8,014.05 8,622.08 (608.03)
Professional Fees
64203 - Recruiting Fees 0.00 4,900.00 (4,900.00)
64205 - Payroll Processing Service 1,193.74 1,152.54 41.20
64206 - Independent Contractors 12,300.00 2,400.00 9,900.00
67004 - Marketing NBCo Fees 27,000.00 36,000.00 (9,000.00)
64201- Audit Fees 450.00 10,450.00 (10,000.00)
64202 - Tax Preparation Fees (2,600.00) (1,300.00) (1,300.00)
64204 - Legal Fees 0.00 5,200.00 (5,200.00)
Total Professional Fees 38,343.74 58,802.54 (20,458.80)
Travel Expenses
65100 - Airfare 1,909.74 637.98 1,271.76
65200 - Accommodations 1,015.59 4,693.14 (3,677.55)
65300 - Meals 107.81 495.94 (388.13)
65400 - Transportation Costs 1,201.40 823.66 377.74
65405 - Mileage ($0.58/mile 2019) 0.00 106.53 (106.53)
65500 - Other Travel Costs 7.00 14.00 (700)
Total Travel Expenses 4,241.54 6,771.25 (2,529.71)
Total General and Administrative 175,665.81 162,818.75 12,847.06
Advertising Expenses
66101- Advertising - Purchased 2,450.00 36,000.00 (33,550.00)
66121- Promotional Gift Cards 26,545.15 12,757.70 13,787.45
66123 - Promotional Client Gifts 18,094.61 17,203.66 890.95
66202 - Ad Production 0.00 2,017.50 (2,017.50)
66203 - Creative Design/Development 2,875.11 20,092.65 (17,217.54)
Total Advertising Expenses 49,964.87 88,071.51 (38,106.64)
Marketing Expenses
Community Relations
67103 - Community Partner Events 7,500.00 0.00 7,500.00
67101- Research 1,500.00 1,690.00 (190.00)
67104 - Annual Marketing Outlook Event 74,984.71 0.00 74,984.71
67108 - Company -Sponsored Events 0.00 1,250.00 (1,250.00)
Total Community Relations 83,984.71 2,940.00 81,044.71
Marketing Collateral
67311- Collateral Production Expenses 0.00 939.15 (939.15)
Total Marketing Collateral 0.00 939.15 (939.15)
Digital Marketing
67508 - Website Redesign Expenses 3,403.12 0.00 3,403.12
66211- CRM Maintenance 7,750.00 4,500.00 3,250.00
Total Digital Marketing 11,153.12 4,500.00 6,653.12
Communications/Public Relations
67605 - Media Special Programs 1,939.98 450.00 1,489.98
Total Communications/Public Relations 1,939.98 450.00 1,489.98
Total Marketing Expenses 97,077.81 8,829.15 88,248.66
International Marketing Initiatives
67401- International Brand Awareness Fees 0.00 11,666.68 (11,666.68)
VISIT ew ort
Visit Newport Beach, Inc. Group Sales (TBID)
A E A C H Statement of Activities YoY for October 2019
Year To Date
Year To Date
10/31/2019
10/31/2018
$ Variance Year over
67411- International Promotional Items
0.00
1,319.94
(1,319,94)
67413 - International Sales Missions
0.00
34,183.18
(34,183.18)
Total International Marketing Initiatives
0.00
47,169.80
(47,169.80)
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
19,868.30
22,325.57
(2,457.27)
66222 - Trade Show Registration
65,333.96
60,925.06
4,408.90
66223 - Trade Show Booth Expenses
151,806.85
28,221.01
123,585.84
Total Trade Show Expense
237,009.11
111,471.64
125,537.47
Sponsorships
66231- Sales Group Enhancement Credit
120,541.25
126,892.35
(6,351.10)
66232 - Hosted Industry Events
0.00
31,537.53
(31,537.53)
66233 - Industry Partnerships
35,229.82
31,464.96
3,764.86
66234 - Industry Sponsorships
6,294.49
71,153.03
(64,858.54)
Total Sponsorships
162,065.56
261,047.87
(98,982.31)
Sales Initiatives
66207 - Site Inspections
25,179.46
11,337.20
13,842.26
66208 - Client Events
5,150.81
19,038.01
(13,887.20)
66210 - Conference Services
165.55
4.20
161.35
66209 - Database/Prospecting
81,570.94
32,518.36
49,052.58
Total Sales Initiatives
112,066.76
62,897.77
49,168.99
Total Direct Sales Initiatives
511,141.43
435,417.28
75,724.15
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66,740.00
76,428.31
(9,688.31)
66244 - Client Events/Relations
0.00
2,222.66
(2,222.66)
66247 - Partner Engagement Expenses
4,291.66
1,173.51
3,118.15
66248 - Group Marketing Initiatives
21,844.75
24,298.08
(2,453.33)
Total Customized Destination Support
92,876.41
104,122.56
(11,246.15)
Total Expenses
1,391,004.20
1,266,973.35
124,030.85
Net Income
438,433.11
352,595.17
85,837.94
VISIT VtA
ort
��,CH
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61015 - Bonuses and Commissions
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101- Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2019
Year To Date Year To Date
09/30/2019 09/30/2018
$ Variance Year over
1,349,772.40
1,213,361.25
136,411.15
1,349,772.40
1,213,361.25
136,411.15
454.07
473.24
(19.17)
1,350,226.47
1,213,834.49
136,391.98
247,045.93
221,689.80
25,356.13
5,647.72
33,623.91
(27,976.19)
3,835.00
3,685.00
150.00
17,684.32
16,159.12
1,525.20
274,212.97
275,157.83
(944.86)
26,204.34
23,783.13
2,421.21
132.73
0.00
132.73
2,279.46
1,792.20
487.26
402.65
304.56
98.09
3,652.99
2,554.57
1,098.42
23,217.51
18,436.29
4,781.22
1,003.18
(578.15)
1,581.33
4,669.89
2,620.65
2,049.24
61,562.75
48,913.25
12,649.50
1,747.30
3,034.26
(1,286.96)
1,054.81
0.00
1,054.81
321.70
860.10
(538.40)
238.72
1,130.34
(891.62)
7,242.75
3,847.50
3,395.25
6,098.50
2,313.22
3,785.28
1,473.38
1,437.52
35.86
2,105.28
2,518.02
(412.74)
0.00
1,388.82
(1,388.82)
767.10
118.06
649.04
15.00
0.00
15.00
11,634.33
9,709.25
1,925.08
72.18
115.48
(43.30)
16,813.30
3,198.55
13,614.75
4,527.98
0.00
4,527.98
8,520.00
4,340.00
4,180.00
281.70
0.00
281.70
4,515.06
4,619.38
(104.32)
VISIT VE
ort
��.AC H
64600 - Business Meals/Entertainment
Total Operating Expenses
Office Lease and Expenses
62100 - Office Lease
62110 - Office Repairs and Maintenance
Total Office Lease and Expenses
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206 - Independent Contractors
67004 - Marketing NBCo Fees
64201- Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65100 - Airfare
65200 - Accommodations
65300 - Meals
65400 - Transportation Costs
65405 - Mileage ($0.535/mile 2017)
65500 - Other Travel Costs
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
66203 - Creative Design/Development
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
Total Community Relations
Marketing Collateral
67311 - Collateral Production Expenses
Total Marketing Collateral
Digital Marketing
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2019
Year To Date Year To Date
09/30/2019 09/30/2018
$ Variance Year over
3,183.77
2,301.83
881.94
70,612.86
40,932.33
29,680.53
29,075.53
27,813.52
1,262.01
1,005.00
105.00
900.00
30,080.53
27,918.52
2,162.01
4,419.54
909.08
3,510.46
3,594.51
7,242.00
(3,647.49)
8,014.05
8,151.08
(137.03)
886.68
853.48
33.20
9,900.00
2,400.00
7,500.00
27,000.00
36,000.00
(9,000.00)
(5,550.00)
2,450.00
(8,000.00)
(2,600.00)
(1,300.00)
(1,300.00)
29,636.68
40,403.48
(10,766.80)
1,733.14
637.98
1,095.16
403.18
1,480.93
(1,077.75)
26.20
0.00
26.20
977.24
0.00
977.24
0.00
106.53
(106.53)
7.00
0.00
7.00
3,146.76
2,225.44
921.32
141,490.88
119,630.85
21,860.03
2,450.00
30,000.00
(27,550.00)
26,545.15
12,757.70
13,787.45
208.43
12,969.91
(12,761.48)
260.00
0.00
260.00
29,463.58
55,727.61
(26,264.03)
7,500.00 0.00
1 Snn nn 1 tien nn
y,000.UU l,byU.UU
0.00
419.15
0.00
419.15
2,552.34
0.00
7,750.00
3,375.00
10,302.34
3,375.00
7,500.00
(190.00)
7,310.00
(419.15)
(419.15)
2,552.34
4,375.00
6.927.34
VISIT VE
ort
��,ACH
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for September 2019
Year To Date
Year To Date
09/30/2019
09/30/2018
$ Variance Year over
Communications/Public Relations
67605 - Media Special Programs
1,939.98
450.00
1,489.98
Total Communications/Public Relations
1,939.98
450.00
1,489.98
Total Marketing Expenses
21,242.32
5,934.15
15,308.17
International Marketing Initiatives
67401- International Brand Awareness Fees
0.00
8,750.01
(8,750.01)
67411- International Promotional Items
0.00
1,319.94
(1,319.94)
67413 - International Sales Missions
0.00
34,183.18
(34,183.18)
Total International Marketing Initiatives
0.00
44,253.13
(44,253.13)
Direct Sales Initiatives
Trade Show Expense
66221- Trade Show Travel Expenses
17,206.08
13,948.80
3,257.28
66222 - Trade Show Registration
53,333.96
30,034.06
23,299.90
66223 - Trade Show Booth Expenses
87,961.78
5,683.06
82,278.72
Total Trade Show Expense
158,501.82
49,665.92
108,835.90
Sponsorships
66231 - Sales Group Enhancement Credit
97,709.30
78,492.35
19,216.95
66232 - Hosted Industry Events
0.00
30,000.00
(30,000.00)
66233 - Industry Partnerships
11,173.99
23,598.71
(12,424.72)
66234 - Industry Sponsorships
6,294.49
71,153.03
(64,858.54)
Total Sponsorships
115,177.78
203,244.09
(88,066.31)
Sales Initiatives
66207 - Site Inspections
21,498.58
7,944.90
13,553.68
66208 - Client Events
1,242.71
14,351.70
(13,108.99)
66210 - Conference Services
52.24
4.20
48.04
66209 - Database/Prospecting
55,489.11
24,938.78
30,550.33
Total Sales Initiatives
78,282.64
47,239.58
31,043.06
Total Direct Sales Initiatives
351,962.24
300,149.59
51,812.65
Customized Destination Support
66243 - Hotel Partner Booking Incentives
48,640.00
51,428.31
(2,788.31)
66244 - Client Events/Relations
0.00
1,310.98
(1,310.98)
66247 - Partner Engagement Expenses
1,667.77
1,173.51
494.26
66248 - Group Marketing Initiatives
10,400.03
19,291.67
(8,891.64)
Total Customized Destination Support
60,707.80
73,204.47
(12,496.67)
Total Expenses
940,642.54
922,970.88
17,671.66
Net Income
409,583.93
290,863.61
118,720.32
VISIT ��ew//��ort
d,::, A C H
Operating Revenue
Revenue
41000 - TOT/TBID Income
Total Revenue
Other Income
Total Operating Revenue
Expenses
Salary and Wages
61010 - Salaries and Wages
61020 - Auto Allowance
61030 - Payroll Tax Expenses
Total Salary and Wages
Benefits
61110 - Medical Insurance
61115 - Benefit Administrative Fees
61120 - Dental Insurance
61125 - Vision Insurance
61130 - Life and Disability
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Employee Engagement Benefit
Total Benefits
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
64101 - Kitchen Supplies
64110 - Office Equipment Leases
64115 - Office Equipment (non-deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non-deprec)
64130 - Voice and Data - Office
64135 - Telephone - Mobile
64140 - Postage
64145 - Shipping Charges
64150 - Bank Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meeting Expenses
64180 - Education
64190 - Business Licensing and Fees
64300 - Depreciation Expense
64600 - Business Meals/Entertainment
Total Operating Expenses
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2019
Year To Date Year To Date
08/31/2019 08/31/2018
801,997.45 737,922.76
801,997.45 737,922.76
S7.2S 6S.77
802,054.70 737,988.53
164, 713.21
147, 79 3.21
2,365.00
2,265.00
11,736.63
10,842.15
178,814.84
160,900.36
17,469.56
15,855.42
42.00
0.00
1,695.19
1,194.80
300.36
203.04
2,322.11
1,380.88
16,286.48
13,250.38
178.53
(471.12)
2,338.05
2,088.65
40,632.28
33,502.05
1,629.40
1,261.26
705.81
0.00
286.70
573.40
0.00
6.95
0.00
2,565.00
6,004.00
1,861.56
985.09
957.75
1,305.28
1,678.74
0.00
1,388.82
614.97
49.33
15.00
0.00
9,201.55
6,194.49
72.18
0.00
16,813.30
1,247.66
4,527.98
0.00
6,195.00
4,340.00
281.70
0.00
3,094.77
0.00
1,695.68
1,198.88
53,428.41
23,323.84
$ Variance Year over
64, 074.69
64,074.69
(8.52)
64,066.17
16,920.00
100.00
894.48
17, 914.48
1,614.14
42.00
500.39
97.32
941.23
3,036.10
649.65
249.40
7,130.23
368.14
705.81
(286.70)
(6.95)
(2,565.00)
4,142.44
27.34
(373.46)
(1,388.82)
565.64
15.00
3,007.06
72.18
15,565.64
4,527.98
1,855.00
281.70
3,094.77
496.80
30,104.57
VISIT �ew/ort
r� LB'E A C H Visit Newport Beach Inc. Group Sales TBID
Statement of Activities YoY for August 2019
Year To Date
Year To Date
08/31/2019
08/31/2018
$ Variance Year over
Office Lease and Expenses
62100 - Office Lease
19,388.42
18,743.26
645.16
62110 - Office Repairs and Maintenance
70.00
70.00
0.00
Total Office Lease and Expenses
19,458.42
18,813.26
645.16
Insurance
63200 - Workers Compensation Insurance
4,419.54
542.58
3,876.96
63300 - Board of Directors Insurance
1,448.00
0.00
1,448.00
Total Insurance
5,867.54
542.58
5,324.96
Professional Fees
64205 - Payroll Processing Service
593.42
563.62
29.80
64206 - Independent Contractors
7,500.00
1,100.00
6,400.00
67004 - Marketing NBCo Fees
27,000.00
18,000.00
9,000.00
64201- Audit Fees
(6,000.00)
2,000.00
(8,000.00)
64202 - Tax Preparation Fees
(2,600.00)
(1,300.00)
(1,300.00)
Total Professional Fees
26,493.42
20,363.62
6,129.80
Travel Expenses
65100 - Airfare
795.00
103.40
691.60
65200 - Accommodations
0.00
1,480.93
(1,480.93)
65400 - Transportation Costs
35.26
0.00
35.26
65405 - Mileage ($0.535/mile 2017)
0.00
61.59
(61.59)
65500 - Other Travel Costs
7.00
0.00
7.00
Total Travel Expenses
837.26
1,645.92
(808.66)
Total General and Administrative
106,085.05
64,689.22
41,395.83
Advertising Expenses
66101- Advertising - Purchased
2,250.00
27,500.00
(25,250.00)
66121 - Promotional Gift Cards
12,507.70
12,757.70
(250.00)
66123 - Promotional Client Gifts
208.43
2,739.55
(2,531.12)
Total Advertising Expenses
14,966.13
42,997.25
(28,031.12)
Marketing Expenses
Community Relations
67103 - Community Partner Events
5,000.00
0.00
5,000.00
67101 - Research
1,500.00
1,690.00
(190.00)
Total Community Relations
6,500.00
1,690.00
4,810.00
Marketing Collateral
67311- Collateral Production Expenses
0.00
419.15
(419.15)
Total Marketing Collateral
0.00
419.15
(419.15)
Digital Marketing
67508 - Website Redesign Expenses
1,701.56
0.00
1,701.56
66211- CRM Maintenance
7,750.00
2,250.00
5,500.00
Total Digital Marketing
9,451.56
2,250.00
7,201.56
Communications/Public Relations
67605 - Media Special Programs
1,939.98
330.00
1,609.98
Total Communications/Public Relations
1,939.98
330.00
1,609.98
Total Marketing Expenses
17,891.54
4,689.15
13,20Z39
VISIT ��ew//��ort
d,::, A C H
International Marketing Initiatives
67401 - International Brand Awareness Fees
67413 - International Sales Missions
Total International Marketing Initiatives
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66244 - Client Events/Relations
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for August 2019
Year To Date Year To Date
08/31/2019 08/31/2018
0.00 5,833.34
0.00 621.17
0.00 6,454.51
7,820.90
8,201.34
40,658.96
16,084.06
58,825.55
1,903.06
107,305.41
26,188.46
53,083.85
34,224.00
0.00
30,000.00
8,076.66
15,732.46
4,444.49
71,153.03
65,605.00
151,109.49
15,266.66
5,675.58
1,178.53
11,156.84
52.24
0.00
36,261.84
17,159.20
52,759.27
33,991.62
225,669.68
211,289.57
36,180.00
28,940.00
0.00
(6.13)
1,522.69
819.49
5,924.24
10,587.76
43,626.93
40,341.12
627,686.45 564,863.23
174,368.25 173,125.30
$ Variance Year over
(5,833.34)
(621.17)
(6,454.51)
(380.44)
24,574.90
56, 922.49
81,116.95
18,859.85
(30,000.00)
(7,655.80)
(66,708.54)
(85,504.49)
9,591.08
(9,978.31)
52.24
19,102.64
18,767.65
14,380.11
7,240.00
6.13
703.20
(4,663.52)
3,285.81
62,823.22
1,242.95
VISIT ew ort
Visit Newport Beach, Inc. Group Sales (TBID)
E A (' N Statement of Activities YoY for July 2019
Year To Date Year To Date
07/31/2019 07/31/2018
$Variance Year over
Operating Revenue
Revenue
41000 - TOT/TBID Income
369,863.43
323,768.81
46,094.62
Total Revenue
369,863.43
323,768.81
46,094.62
Other Income
36.01
31.12
4.89
Total Operating Revenue
369,899.44
323,799.93
46,099.51
Expenses
Salary and Wages
61010 - Salaries and Wages
41,178.31
32,214.67
8,963.64
61020 - Auto Allowance
895.00
575.00
320.00
61030 - Payroll Tax Expenses
3,170.38
2,469.45
700.93
Total Salary and Wages
45,243.69
35,259.12
9,984.57
Benefits
61110 - Medical Insurance
8,912.01
6,602.14
2,309.87
61115 - Benefit Administrative Fees
42.00
0.00
42.00
61120 - Dental Insurance
1,162.24
488.52
673.72
61125 - Vision Insurance
202.07
84.16
117.91
61130 - Life and Disability
1,170.51
665.21
505.30
61140 - Retirement Plan (401k)
9,421.47
7,342.86
2,078.61
61150 - Flexible Spending Plan
824.65
0.00
824.65
61160 - Employee Engagement Benefit
1,527.90
1,519.04
8.86
Total Benefits
23,262.85
16,701.93
6,560.92
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
1,190.35
578.95
611.40
64101 - Kitchen Supplies
352.29
0.00
352.29
64110 - Office Equipment Leases
286.70
286.70
0.00
64120 - Equipment Repairs & Maintenance
0.00
1,282.50
(1,282.50)
64125 - Computer Software (non-deprec)
5,909.50
1,022.29
4,887.21
64130 - Voice and Data - Office
489.56
474.54
15.02
64135 - Telephone - Mobile
505.28
589.46
(84.18)
64145 - Shipping Charges
74.99
49.33
25.66
64150 - Bank Fees
15.00
0.00
15.00
64160 - Membership Dues
6,643.78
3,070.75
3,573.03
64165 - Subscriptions
8.07
0.00
8.07
64170 - Team Meetings
16,381.91
146.05
16,235.86
64180 - Education
5,000.00
4,340.00
660.00
64300 - Depreciation Expense
1,616.35
0.00
1,616.35
64600 - Business Meals/Entertainment
98.08
545.99
(447.91)
Total Operating Expenses
38,571.86
12,386.56
26,185.30
Office Lease and Expenses
62100 - Office Lease
9,687.10
9,347.40
339.70
62110 - Office Repairs and Maintenance
0.00
35.00
(35.00)
Total Office Lease and Expenses
9,687.10
9,382.40
304.70
VISIT VEA
ort
C H
V
Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total Insurance
Professional Fees
64205 - Payroll Processing Service
64206- Independent Contractors
64201 - Audit Fees
64202 - Tax Preparation Fees
Total Professional Fees
Travel Expenses
65200 - Accommodations
Total Travel Expenses
Total General and Administrative
Advertising Expenses
66101 - Advertising - Purchased
66121 - Promotional Gift Cards
66123 - Promotional Client Gifts
Total Advertising Expenses
Marketing Expenses
Community Relations
67103 - Community Partner Events
67101 - Research
Total Community Relations
Digital Marketing
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Special Programs
Total Communications/Public Relations
Total Marketing Expenses
International Marketing Initiatives
67401 - International Brand Awareness Fees
67413 - International Sales Missions
Total International Marketing Initiatives
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Enhancement Credit
66233 - Industry Partnerships
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2019
Year To Date Year To Date
07/31/2019 07/31/2018
$Variance Year over
4,419.54
542.58
3,876.96
1,448.00
0.00
1,448.00
5,867.54
542.58
5,324.96
147.78
139.18
8.60
5,100.00
0.00
5,100.00
(11,000.00)
0.00
(11,000.00)
(2,600.00)
0.00
(2,600.00)
(8,352.22)
139.18
(8,491.40)
0.00
542.89
(542.89)
0.00
542.89
(542.89)
45,774.28
22,993.61
22,780.67
2,250.00
20,500.00
(18,250.00)
0.00
5,075.00
(5,075.00)
39.95
1,611.87
(1,571.92)
2,289.95
27,186.87
(24,896.92)
2,500.00
0.00
2,500.00
1,500.00
1,500.00
0.00
4,000.00
1,500.00
2,500.00
850.78
0.00
850.78
7,750.00
1,125.00
6,625.00
8,600.78
1,125.00
7,475.78
381.53
150.00
231.53
381.53
150.00
231.53
12,982.31
2,775.00
10,207.31
0.00
2,916.67
(2,916.67)
0.00
50.00
(50.00)
0.00
2,966.67
(2,966.67)
5,343.75
2,140.64
3,203.11
26,559.96
5,975.00
20,584.96
481.72
0.00
481.72
32,385.43
8,115.64
24,269.79
35,054.45
14,174.00
20,880.45
51288.33
3,199.58
2,088.75
VISIT VE
ort
00—
AC H
V
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Total Expenses
Net Income
Visit Newport Beach, Inc. Group Sales (TBID)
Statement of Activities YoY for July 2019
Year To Date Year To Date
07/31/2019 07/31/2018
6,725.08
2,258.96
4,466.12
69.00
3,092.07
(3,023.07)
49.74
0.00
49.74
32,761.84
9,579.62
23,182.22
39,605.66
14,930.65
24,675.01
114,811.96
40,419.87
74,392.09
26,680.00
7,700.00
18,980.00
33.98
72.34
(38.36)
3,329.53
5,301.32
(1,971.79)
30,043.51
13,073.66
16, 969.85
274,408.55
161,376.73
113, 031.82
95,490.89
162,423.20
(66,932.3D
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
TBIDChecking -
Union Bank NA
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/1/2019
7/2/2019
7/8/2019
7/8/2019
7/9/2019
7/10/2019
7/10/2019
7/10/2019
7/10/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
7/15/2019
Payee
V01143--The Irvine Company, LLC
V00920--Prestige Concepts Promotion and Events
V00302--Cvent, Inc.
V01752--Mark Iverson
V01564--Standard Insurance RAS Executive
V01563--Standard Insurance Company
V01094--Strategic Database Research
V00773--Newport Beach Marriott Hotel and Spa
V00553--Fashion Island Hotel
V00553--Fashion Island Hotel
V00150--Blue Shield of California
V01223--US Bank
V00423--Franchise Tax Board
V01117--TASC
V01234--Verizon Wireless
V01234--Verizon Wireless
V00423--Franchise Tax Board
V00423--Franchise Tax Board
V00947--Hyatt Regency John Wayne Airport NB
V00526--Hyatt Regency Newport Beach
V00767--Newport Beach Bayview Marriott
V00553--Fashion Island Hotel
V00553--Fashion Island Hotel
V00553--Fashion Island Hotel
V00553--Fashion Island Hotel
V01474-- Rena issance Newport Beach
V01474-- Rena issance Newport Beach
V01474-- Rena issance Newport Beach
V01474-- Rena issance Newport Beach
V01474-- Rena issance Newport Beach
V01030--Simpleview, Inc.
V00773--Newport Beach Marriott Hotel and Spa
Document No
0719 Ste130 Lea
6773
6776
6769
6775
6772
6771
6774
6770
6768
7/19 Blueshield
387627417
PPE 06/21/19-Ho
PPE 06/29/19TAS
6/19VerizonVNB
6/19Verizonphon
Voided - 1121
1121
6783
6782
6790
6789
6787
6780
6779
6777
6792
6791
6778
6785
6788
6781
Amount
10,233.55
3,438.04
45,163.67
898.00
501.29
546.53
3,500.00
3,343.00
2,000.00
750.00
7,275.41
287.85
200.00
646.12
105.28
140.41
-800.00
800.00
1,300.00
500.00
2,180.00
500.00
500.00
1,000.00
1,000.00
1,000.00
1,500.00
1,000.00
1,000.00
1,000.00
17,000.00
500.00
Cleared
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
7/31/2019
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
Payee
Document No
Amount
Cleared
7/15/2019
V00773--Newport Beach Marriott Hotel and Spa
6786
12,592.00
7/31/2019
7/15/2019
V00773--Newport Beach Marriott Hotel and Spa
6784
500.00
7/31/2019
7/18/2019
V01621--AmTrust North America
1122
4,780.50
7/31/2019
7/22/2019
V00767--Newport Beach Bayview Marriott
6813
276.85
8/30/2019
7/22/2019
V01620--Lido House, LLC
6810
656.00
8/30/2019
7/22/2019
V00767--Newport Beach Bayview Marriott
6805
500.00
8/30/2019
7/22/2019
V00767--Newport Beach Bayview Marriott
6794
1,200.00
8/30/2019
7/22/2019
V00553--Fashion Island Hotel
6799
1,000.00
7/31/2019
7/22/2019
V00553--Fashion Island Hotel
6803
1,000.00
7/31/2019
7/22/2019
V00553--Fashion Island Hotel
6798
3,000.00
7/31/2019
7/22/2019
V01038--Skyward Technical Solutions
6793
1,482.50
7/31/2019
7/22/2019
V01755--Adobe Inc.
6812
1,000.00
8/30/2019
7/22/2019
V00882--Pedego Corona Del Mar
6802
1,385.30
8/30/2019
7/22/2019
V01474-- Rena issance Newport Beach
6797
500.00
8/30/2019
7/22/2019
V00526--Hyatt Regency Newport Beach
6796
1,500.00
8/30/2019
7/22/2019
V00526--Hyatt Regency Newport Beach
6809
1,000.00
8/30/2019
7/22/2019
V00526--Hyatt Regency Newport Beach
6811
2,000.00
8/30/2019
7/22/2019
V00102--Balboa Bay Resort
6808
500.00
7/31/2019
7/22/2019
V00102--Balboa Bay Resort
6804
1,000.00
7/31/2019
7/22/2019
V00102--Balboa Bay Resort
6801
1,000.00
7/31/2019
7/22/2019
V00773--Newport Beach Marriott Hotel and Spa
6795
500.00
8/30/2019
7/22/2019
V00773--Newport Beach Marriott Hotel and Spa
6807
2,500.00
8/30/2019
7/22/2019
V00130--Best Chauffeured Worldwide
6806
4,102.31
7/31/2019
7/22/2019
V01498--Newport Beach Country Club*
6800
460.00
7/31/2019
7/23/2019
V01117--TASC
PPE 07/13/19TAS
646.12
7/31/2019
7/23/2019
V01740--Choice Builder
8/19Dental/Visi
647.43
7/31/2019
7/25/2019
V01223--US Bank
387627417-2
79.52
7/31/2019
7/30/2019
V00423--Franchise Tax Board
PPE 07/05/19-Ho
200.00
7/31/2019
7/30/2019
V00130--Best Chauffeured Worldwide
6817
265.84
8/30/2019
7/30/2019
V00882--Pedego Corona Del Mar
6823
404.05
8/30/2019
7/30/2019
V00773--Newport Beach Marriott Hotel and Spa
6821
1,500.00
8/30/2019
7/30/2019
V00767--Newport Beach Bayview Marriott
6815
412.45
8/30/2019
7/30/2019
V00553--Fashion Island Hotel
6818
1,000.00
8/30/2019
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
Payee
Document No
Amount
Cleared
7/30/2019
V00553--Fashion Island Hotel
6822
370.45
8/30/2019
7/30/2019
V01474-- Rena issance Newport Beach
6814
1,730.30
8/30/2019
7/30/2019
V01474-- Rena issance Newport Beach
6824
500.00
8/30/2019
7/30/2019
V01474-- Rena issance Newport Beach
6820
1,500.00
8/30/2019
7/30/2019
V01474-- Rena issance Newport Beach
6816
2,500.00
8/30/2019
7/30/2019
V01474-- Rena issance Newport Beach
6819
2,500.00
8/30/2019
7/30/2019
V01558--Newport Beach Foundation
FY20Contributio
2,500.00
7/31/2019
7/31/2019
V01621--AmTrust North America
6827
37.42
8/30/2019
7/31/2019
V01094--Strategic Database Research
6825
3,500.00
8/30/2019
7/31/2019
V00553--Fashion Island Hotel
6826
250.00
8/30/2019
8/1/2019
V01564--Standard Insurance RAS Executive
6830
458.69
8/30/2019
8/1/2019
V01563--Standard Insurance Company
6828
546.53
8/30/2019
8/1/2019
V00553--Fashion Island Hotel
6829
416.00
8/30/2019
8/1/2019
V00553--Fashion Island Hotel
6833
812.78
8/30/2019
8/1/2019
V00553--Fashion Island Hotel
6832
500.00
8/30/2019
8/1/2019
V01756--Tarsus Connect LLC
6831
3,450.00
8/30/2019
8/6/2019
V01143--The Irvine Company, LLC
0819Ste130 #2
0.01
8/30/2019
8/6/2019
V00102--Balboa Bay Resort
Voided - 6836
-1,000.00
8/30/2019
8/6/2019
V01117--TASC
PPE 07/27/19TAS
646.12
8/30/2019
8/6/2019
V01620--Lido House, LLC
6844
500.00
8/30/2019
8/6/2019
V00773--Newport Beach Marriott Hotel and Spa
6838
1,000.00
8/30/2019
8/6/2019
V00773--Newport Beach Marriott Hotel and Spa
6837
1,500.00
8/30/2019
8/6/2019
V00773--Newport Beach Marriott Hotel and Spa
6834
1,500.00
8/30/2019
8/6/2019
V00773--Newport Beach Marriott Hotel and Spa
6843
2,500.00
8/30/2019
8/6/2019
V00553--Fashion Island Hotel
6841
1,000.00
8/30/2019
8/6/2019
V00526--Hyatt Regency Newport Beach
6840
1,000.00
8/30/2019
8/6/2019
V00102--Balboa Bay Resort
6839
1,000.00
8/30/2019
8/6/2019
V00102--Balboa Bay Resort
6836
1,000.00
8/30/2019
8/6/2019
V01474-- Rena issance Newport Beach
6835
1,500.00
8/30/2019
8/6/2019
V01498--Newport Beach Country Club*
6842
460.08
8/30/2019
8/6/2019
V01143--The Irvine Company, LLC
0819 Ste130 Lea
9,701.31
8/30/2019
8/6/2019
V01377--Newport Beach and Company
Q1_FY20 Marketi
27,000.00
8/30/2019
8/6/2019
V00604--Kim Kelley Productions
1123
5,100.00
8/30/2019
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
Payee
Document No
Amount
Cleared
8/7/2019
V00150--Blue Shield of California
8/19 Blueshield
7,275.41
8/30/2019
8/7/2019
V01223--US Bank
CopierLease7/19
408.91
8/30/2019
8/8/2019
V00423--Franchise Tax Board
PP 07/19/19-Hoy
200.00
8/30/2019
8/9/2019
V01234--Verizon Wireless
7/19 Cellular D
264.56
8/30/2019
8/9/2019
V01758--Change Healthcare
6852
1,289.62
8/30/2019
8/9/2019
V00882--Pedego Corona Del Mar
6846
161.62
8/30/2019
8/9/2019
V01474-- Rena issance Newport Beach
6848
1,000.00
8/30/2019
8/9/2019
V01474-- Rena issance Newport Beach
6845
2,000.00
8/30/2019
8/9/2019
V00947--Hyatt Regency John Wayne Airport NB
6851
1,500.00
8/30/2019
8/9/2019
V00918--Premier Displays and Exhibits
6849
54,246.75
8/30/2019
8/9/2019
V00102--Balboa Bay Resort
6850
1,500.00
8/30/2019
8/9/2019
V00553--Fashion Island Hotel
6847
100.00
8/30/2019
8/9/2019
V00553--Fashion Island Hotel
6853
338.62
8/30/2019
8/14/2019
V00773--Newport Beach Marriott Hotel and Spa
6856
1,722.83
In Transit
8/14/2019
V01760--Tammy Flores
6855
933.60
8/30/2019
8/14/2019
V01474-- Rena issance Newport Beach
6854
2,000.00
8/30/2019
8/19/2019
V01117--TASC
PPE 08/10/19TAS
646.09
8/30/2019
8/19/2019
V01117--TASC
Voided - PPE 08/10/19TAS
-646.12
8/30/2019
8/19/2019
V01117--TASC
PPE 08/10/19TAS
646.12
8/30/2019
8/19/2019
V00423--Franchise Tax Board
PP 08/02/19-Hoy
200.00
8/30/2019
8/21/2019
V01740--Choice Builder
9/19Dental/Visi
647.43
8/30/2019
8/23/2019
V00553--Fashion Island Hotel
6859
1,000.00
9/30/2019
8/23/2019
V01762--Laura Scheller
6861
328.59
9/30/2019
8/23/2019
V01620--Lido House, LLC
6858
500.00
9/30/2019
8/23/2019
V00882--Pedego Corona Del Mar
6857
80.81
9/30/2019
8/23/2019
V00767--Newport Beach Bayview Marriott
6860
429.40
9/30/2019
8/26/2019
V00423--Franchise Tax Board
PP 08/16/19-Hoy
200.00
8/30/2019
8/26/2019
V00767--Newport Beach Bayview Marriott
Voided - 6744
-1,201.14
8/30/2019
8/26/2019
V01620--Lido House, LLC
Voided - 6553
-918.12
8/30/2019
8/29/2019
V00773--Newport Beach Marriott Hotel and Spa
Voided - 6865
-1,000.00
8/30/2019
8/29/2019
V00882--Pedego Corona Del Mar
6863
484.86
9/30/2019
8/29/2019
V00773--Newport Beach Marriott Hotel and Spa
6865
1,000.00
8/30/2019
8/29/2019
V00947--Hyatt Regency John Wayne Airport NB
6867
500.00
9/30/2019
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
Payee
Document No
Amount
Cleared
8/29/2019
V00102--Balboa Bay Resort
6862
500.00
9/30/2019
8/29/2019
V00767--Newport Beach Bayview Marriott
6866
533.26
9/30/2019
8/29/2019
V00767--Newport Beach Bayview Marriott
6868
1,201.14
9/30/2019
8/29/2019
V01620--Lido House, LLC
6864
918.12
9/30/2019
9/3/2019
V00773--Newport Beach Marriott Hotel and Spa
Voided - 6871
-1,000.00
9/30/2019
9/3/2019
V00773--Newport Beach Marriott Hotel and Spa
Voided - 6872
-2,500.00
9/30/2019
9/3/2019
V01564--Standard Insurance RAS Executive
6876
649.82
9/30/2019
9/3/2019
V01563--Standard Insurance Company
6875
546.53
9/30/2019
9/3/2019
V00773--Newport Beach Marriott Hotel and Spa
6872
2,500.00
9/30/2019
9/3/2019
V00773--Newport Beach Marriott Hotel and Spa
6871
1,000.00
9/30/2019
9/3/2019
V00553--Fashion Island Hotel
6873
1,000.00
9/30/2019
9/3/2019
V00553--Fashion Island Hotel
6870
1,000.00
9/30/2019
9/3/2019
V00553--Fashion Island Hotel
6869
3,000.00
9/30/2019
9/3/2019
V01094--Strategic Database Research
6874
3,500.00
9/30/2019
9/4/2019
V01143--The Irvine Company, LLC
0919 Ste130 Lea
9,687.11
9/30/2019
9/4/2019
V00604--Kim Kelley Productions
1124
2,400.00
9/30/2019
9/5/2019
V00150--Blue Shield of California
9/19 Blueshield
7,275.41
9/30/2019
9/6/2019
V00440--Garcia Insurance
6877
2,285.00
9/30/2019
9/10/2019
V01620--Lido House, LLC
6896
750.00
In Transit
9/10/2019
V01474-- Rena issance Newport Beach
6881
1,000.00
9/30/2019
9/10/2019
V01474-- Rena issance Newport Beach
6902
1,000.00
9/30/2019
9/10/2019
V01474-- Rena issance Newport Beach
6906
1,000.00
9/30/2019
9/10/2019
V01474-- Rena issance Newport Beach
6901
1,000.00
9/30/2019
9/10/2019
V00526--Hyatt Regency Newport Beach
6895
800.00
9/30/2019
9/10/2019
V00526--Hyatt Regency Newport Beach
6888
750.00
9/30/2019
9/10/2019
V00526--Hyatt Regency Newport Beach
6913
2,000.00
9/30/2019
9/10/2019
V00526--Hyatt Regency Newport Beach
6894
1,000.00
9/30/2019
9/10/2019
V00526--Hyatt Regency Newport Beach
6892
3,000.00
9/30/2019
9/10/2019
V00102--Balboa Bay Resort
6912
1,000.00
9/30/2019
9/10/2019
V00102--Balboa Bay Resort
6900
500.00
9/30/2019
9/10/2019
V00102--Balboa Bay Resort
6899
1,000.00
9/30/2019
9/10/2019
V00102--Balboa Bay Resort
6911
500.00
9/30/2019
9/10/2019
V00102--Balboa Bay Resort
6910
1,500.00
9/30/2019
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
Payee
Document No
Amount
Cleared
9/10/2019
V00102--Balboa Bay Resort
6905
1,000.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6880
1,000.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6887
1,000.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6898
2,000.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6879
2,500.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6886
750.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6897
2,000.00
9/30/2019
9/10/2019
V00553--Fashion Island Hotel
6885
451.87
9/30/2019
9/10/2019
V00947--Hyatt Regency John Wayne Airport NB
6904
2,050.00
9/30/2019
9/10/2019
V00947--Hyatt Regency John Wayne Airport NB
6891
1,500.00
9/30/2019
9/10/2019
V00947--Hyatt Regency John Wayne Airport NB
6878
500.00
9/30/2019
9/10/2019
V00835--Orange County Visitors Association
6909
100.00
9/30/2019
9/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6908
1,000.00
9/30/2019
9/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6890
500.00
9/30/2019
9/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6907
1,000.00
9/30/2019
9/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6903
1,000.00
9/30/2019
9/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6893
7,500.00
9/30/2019
9/10/2019
V00773--Newport Beach Marriott Hotel and Spa
6884
500.00
9/30/2019
9/10/2019
V01766--Kate Lichter
6883
817.20
9/30/2019
9/10/2019
V01498--Newport Beach Country Club*
6882
460.00
9/30/2019
9/10/2019
V00545--Interior Plantscapes
6889
105.00
9/30/2019
9/11/2019
V01234--Verizon Wireless
7/19-8/19 Veriz
264.56
9/30/2019
9/11/2019
V00773--Newport Beach Marriott Hotel and Spa
6922
2,500.00
9/30/2019
9/11/2019
V00773--Newport Beach Marriott Hotel and Spa
6921
1,000.00
9/30/2019
9/11/2019
V00773--Newport Beach Marriott Hotel and Spa
6920
1,000.00
9/30/2019
9/11/2019
V01117--TASC
PPE 08/24/19TAS
646.09
9/30/2019
9/11/2019
V01770--HR411PLUS
6919
450.00
In Transit
9/11/2019
V01030--Simpleview, Inc.
6918
9,250.00
9/30/2019
9/11/2019
V00773--Newport Beach Marriott Hotel and Spa
6916
1,960.00
9/30/2019
9/11/2019
V00773--Newport Beach Marriott Hotel and Spa
6917
500.00
9/30/2019
9/11/2019
V00526--Hyatt Regency Newport Beach
6915
2,411.95
9/30/2019
9/11/2019
V00102--Balboa Bay Resort
6914
500.00
9/30/2019
9/13/2019
V00423--Franchise Tax Board
PP 08/30/19-Hoy
200.00
9/30/2019
Company Name:
Newport Beach And Company
Report Name:
Check Register
Created On:
10/9/2019
Bank
Date
9/16/2019
9/16/2019
9/16/2019
9/16/2019
9/16/2019
9/17/2019
9/17/2019
9/17/2019
9/17/2019
9/17/2019
9/18/2019
9/19/2019
9/19/2019
9/19/2019
9/19/2019
9/23/2019
9/24/2019
9/24/2019
9/24/2019
9/24/2019
9/24/2019
9/24/2019
9/24/2019
9/26/2019
9/30/2019
Total for TBIDChecking
Payee
V01117--TASC
V01117--TASC
V01117--TASC
V00285--Cox Communications
V00285--Cox Communications
V00773--Newport Beach Marriott Hotel and Spa
V00773--Newport Beach Marriott Hotel and Spa
V00526--Hyatt Regency Newport Beach
V00102--Balboa Bay Resort
V00553--Fashion Island Hotel
V00767--Newport Beach Bayview Marriott
V01030--Simpleview, Inc.
V00608--KMJ Corbin and Co.
V00767--Newport Beach Bayview Marriott
V01771--Susan Powell
V01740--Choice Builder
V00130--Best Chauffeured Worldwide
V01038--Skyward Technical Solutions
V01773--CUPA-HR
V01772--Jodi Cassidy
V00767--Newport Beach Bayview Marriott
V00526--Hyatt Regency Newport Beach
V00918--Premier Displays and Exhibits
V00947--Hyatt Regency John Wayne Airport NB
V01117--TASC
Document No
PPE 09/7/19TASC
PPE 08/24/19Sal
PPE 08/10/19TAS
Voided - 082519 9/19Srvc
082519 9/19Srvc
6927
6923
6926
6925
6924
Voided - 6737
6930
6929
6928
1125
10/19Dent/Visio
6937
6932
6935
6934
6936
6933
6931
Voided - 6878
PPE 09/21/19TAS
Amount
646.12
0.03
0.03
-495.53
495.53
1,000.00
1,000.00
1,000.00
2,000.00
250.00
-384.20
5,500.00
5,000.00
384.20
751.00
647.43
346.08
5,886.47
1,037.00
964.20
5,000.00
500.00
27,056.73
-500.00
646.10
Y / V,OOJ.00
Cleared
9/30/2019
9/30/2019
9/30/2019
9/30/2019
9/30/2019
9/30/2019
9/30/2019
In Transit
9/30/2019
9/30/2019
9/30/2019
9/30/2019
9/30/2019
9/30/2019
In Transit
9/30/2019
9/30/2019
In Transit
In Transit
9/30/2019
In Transit
In Transit
In Transit
9/30/2019
9/30/2019
VISIT ew OYt
E A C H iroc.
Management Statement Regarding Compliance With Certain Provisions of the Agreement
Between the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion,
Branding, and Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are responsible
for complying with the provisions of Section 4 of the Agreement Between the City of Newport
Beach and Visit Newport Beach Inc. (collectively, the "Parties") for Tourism Promotion,
Branding, and Marketing Services (the "Agreement") in that funds received by the Organization
pursuant to this Agreement were expended in accordance with this Agreement. We are responsible
for establishing and maintaining effective internal controls over compliance with the provisions of
Section 4 of the Agreement. We have performed an evaluation of the Organization's compliance
with the provisions of Section 4 of the Agreement regarding funds expended during the years
ended June 30, 2017 and 2016, as summarized in the attached Expenditures Report. Based on this
evaluation, we assert that the Organization was in compliance with the provisions of Section 4 of
the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise
a program to market and promote the Newport Beach brand and to promote tourism in, and serve
the needs of, visitors to Newport Beach as well as increase the amount of TOT collected through
their promotional activities ("Services"). Subject to the foregoing sentence, the Services shall, at
a minimum, include the following: (a) the maintenance of suitable office space and the
employment of competent personnel to carry out the promotional, branding and marketing duties;
(b) the preparation of brochures, publications, guides, on-line promotions, social network efforts,
and other marketing materials and information that inform prospective tourists and visitors of the
recreational activities, cultural assets, shopping and dining opportunities, night-time stay
opportunities, and natural beauty of Newport Beach; (c) the dissemination of information
described in this section by way of the media, direct mail, handouts, social networking, websites,
smart phone applications, or other means of distribution; (d) the development and implementation
of specific marketing programs designed to increase awareness of the Newport Beach brand and
to increase business and visitor trade in Newport Beach; and (e) any additional Services when
proposed by the City which are consistent with the promotion of tourism and the Newport Beach
brand which are mutually agreeable and acceptable to the Parties.
Visit
m�ew/p ort
G��B'EACH
'J & COMPANY
Management Response to Audit Findings
FY 2018 Audit (6/30/18)
Observation #1
Finding:
The fourth amendment to the facility lease agreement was entered into between The
Irvine Company as the landlord and the Organization as the tenant in 2015. The original
lease agreement and three subsequent amendments were entered into between the Irvine
Company and Visit Newport Beach Inc. The latest amendment is unclear as to whether
the Organization now has all of the legal obligations related to the original and amended
lease agreement, or if Visit Newport Beach Inc. still has certain legal obligations under
the original and amended lease agreement.
Recommendation:
We recommend that management obtain clarification from the landlord regarding the
legal obligations under the lease, and that such clarification be in writing so that all
parties involved are aware of their legal obligations regarding the lease. This will ensure
all commitments are properly documented and could prevent future confusion or
misunderstanding.
Management Response:
We will contact the landlord and obtain written clarification regarding the legal obligations for all
involved parties under the lease.
Observation #2
Finding:
Certain related party contributions and other similar decisions are not formally approved
through a motion of the board of directors.
Recommendation:
We recommend the Organization implement a policy to approve all related party
contributions and other similar board decisions through a formal motion and obtain
documented approval related to these transactions. This will help ensure that all related
party transactions and similar activities are recorded properly.
Management Response:
All material related party contributions are approved during the formal budget process and approval
is documented in the Board minutes.
Observation #3
Finding:
The Organization does not maintain a copy of checks issued and therefore only has
visibility to check copies once checks clear the bank and appear in the online portal.
Recommendation:
We recommend that management retain a copy of all checks issued or use a two-part
check that allows them to retain support for all check amounts issued. This will help
ensure the record keeping of any outstanding checks written that have yet to clear the
bank.
Management Response:
We have implemented a policy to maintain copies of all checks issued in-house. During the
monthly reconciliation process, a review of any outstanding checks is performed to ensure they are
valid. The CEO reviews the reconciliations monthly.
Observation #4
Finding:
The Organization did not maintain a detail or reconciliation as it relates to the American
Express Corporate Credit Cards account.
Recommendation:
We recommend that the Organization keep a detail record of all account reconciliations.
This will help ensure accuracy of the account balance and activity recorded throughout
the course of the year.
Management Response:
We have implemented a procedure to reconcile the American Express Corporate Credit Card
charges on a monthly basis to ensure accuracy of the activity.
Observation #5
Finding:
The former CFO processed payroll, including the payroll of new employees, with no
independent review of the corresponding payroll data.
Recommendation:
We recommend that payroll be reviewed each pay period by an independent party in
order to mitigate the risk that unauthorized employees, or pay rates, are processed and
paid by the Organization.
Management Response:
Due to the small size of the Organization, it is not feasible to have an independent party review the
payroll. The Financial Coordinator reviews each payroll from the time card to the preparation of
the payroll journal entry. She also reviews the payroll of new employees to ensure they have been
set up in the system at the correct rates by the VP of Finance.
Observation #6
Finding:
The Organization does not have a formal policy in place to review and approve journal
entries posted into the accounting system.
Recommendation:
We recommend that the Organization implement a policy that would allow for the proper
review and approval of journal entries to prevent material misstatements and/or errors in
the financial statements. Such review should be documented and retained in the
Organization's records.
Management Response:
Procedures are being created for a monthly closing process including standardized journal entries
which will then be prepared and reviewed by both the Financial Coordinator and the VP of Finance.
Observation #7
Finding:
The Organization does not maintain the meeting minutes of the Audit Committee nor the
Compensation Committee.
Recommendation:
We recommend that the Organization document and maintain records of all matters
discussed during these committee meetings to ensure proper documentation of all matters
discussed.
Management Response:
The Organization agrees that minutes should be maintained and began maintaining minutes with the
last Audit Committee meeting that was held for the FY2018 audit follow up.
VISIT eW ort
��
��, EACHINc.
Management Response to Audit Findings
FY 2018 Audit (6/30/18)
Observation #1
Finding:
The fourth amendment to the facility lease agreement was entered into between The
Irvine Company as the landlord and the Organization as the tenant in 2015. The original
lease agreement and three subsequent amendments were entered into between the Irvine
Company and Visit Newport Beach Inc. The latest amendment is unclear as to whether
the Organization now has all of the legal obligations related to the original and amended
lease agreement, or if Visit Newport Beach Inc. still has certain legal obligations under
the original and amended lease agreement.
Recommendation:
We recommend that management obtain clarification from the landlord regarding the
legal obligations under the lease, and that such clarification be in writing so that all
parties involved are aware of their legal obligations regarding the lease. This will ensure
all commitments are properly documented and could prevent future confusion or
misunderstanding.
Management Response:
We will contact the landlord and obtain written clarification regarding the legal obligations for
all involved parties under the lease.
Observation #2
Finding:
Certain related party contributions and other similar decisions are not formally approved
through a motion of the board of directors.
Recommendation:
We recommend the Organization implement a policy to approve all related party
contributions and other similar board decisions through a formal motion and obtain
documented approval related to these transactions. This will help ensure that all related
party transactions and similar activities are recorded properly.
Management Response:
All material related party contributions are approved during the formal budget process and
approval is documented in the Board minutes.
Observation #3
Finding:
The Organization does not maintain a copy of checks issued and therefore only has
visibility to check copies once checks clear the bank and appear in the online portal.
Recommendation:
We recommend that management retain a copy of all checks issued or use a two-part
check that allows them to retain support for all check amounts issued. This will help
ensure the record keeping of any outstanding checks written that have yet to clear the
bank.
Management Response:
We have implemented a policy to maintain copies of all checks issued in-house.
Observation #4
Finding:
The Organization does not generate or receive any verifiable support for sponsorships.
The accounting department obtains internal reports from the sales department rather than
requesting and maintaining third party support.
Recommendation:
We recommend that the Organization receive and retain verifiable support for
sponsorships. This will help ensure the accuracy of the transactions that occur throughout
the year and ensure that all activities and amounts are properly recorded.
Management Response:
The Finance department does obtain third party documentation from the hotels in the form of
Group Contracts which generally outline the amounts to be paid for sponsorships. These
contracts are maintained in the sales department and are attached in their CRM.
Observation #5
Finding:
The Organization did not maintain a detail reconciliation of the Group Booking Incentive
Reserve account at year end.
Recommendation:
We recommend that the Organization keep a detail record of all account reconciliations.
This will help ensure accuracy of the account balance and activity recorded throughout
the course of the year.
Management Response:
The Organization agrees that an account reconciliation of the Group Booking Incentive Reserve
should be maintained and will maintain such a reconciliation for year-end.
Observation #6
Finding•
The Organization's marketing department does not keep track of or bill amounts due to
the Organization as it relates to advertisements on the Organization's website for
businesses not located within the City of Newport Beach.
Recommendation:
We recommend that the Organization keep a detail record of all amounts due to the
Organization. This will help the Organization track and keep record of any amounts owed.
Management Response:
It is not the Organization's policy to actively seek out outside advertising. In the instances where
advertisements are placed on the Organization's website, a media kit that outlines the advertising
rates is provided to all advertisers and Finance is notified so they can bill the appropriate
businesses.
Observation #7
Finding:
The former CFO processed payroll, including the payroll of new employees, with no
independent review of the corresponding payroll data.
Recommendation:
We recommend that payroll be reviewed each pay period by an independent party in
order to mitigate the risk that unauthorized employees, or pay rates, are processed and
paid by the Organization.
Management Response:
Procedures are being created for a monthly closing process including standardized journal entries
which will then be prepared and reviewed by both the Financial Coordinator and the VP of
Finance.
Observation #8
Finding:
The Organization does not have a formal policy in place to review and approve journal
entries posted into the accounting system.
Recommendation:
We recommend that the Organization implement a policy that would allow for the proper
review and approval of journal entries to prevent material misstatements and/or errors in
the financial statements. Such review should be documented and retained in the
Organization's records.
Management Response:
Procedures are being created for a monthly closing process including standardized journal entries
which will then be prepared and reviewed by both the Financial Coordinator and the VP of
Finance.
Observation #9
Finding:
The Organization does not maintain the meeting minutes of the Audit Committee nor the
Compensation Committee.
Recommendation:
We recommend that the Organization document and maintain records of all matters
discussed during these committee meetings to ensure proper documentation of all matters
discussed.
Management Response:
The Organization agrees that minutes should be maintained and began maintaining minutes with
the last Audit Committee meeting that was held for the FY2018 audit follow up.
HASKE LLH S I E
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS ADVISORS
THE VALUE OF EXPERIENCE
August 28, 2018
Audit Committee of the Board of Directors and Management
Newport Beach & Company and Visit Newport Beach Inc.
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
Required Governance Communications
On September 285 20175 we made certain disclosures to the audit committee of Newport Beach &Company
and Visit Newport Beach Inc. as required under AU Section 380.
Required Internal Control Communications
In planning and performing our audits of the financial statements of Newport Beach &Company and Visit
Newport Beach Inc. (together, the "Organizations") as of and for the years ended December 31, 2017 and
2016, in accordance with auditing standards generally accepted in the United States of America, we
considered the Organizations' internal control over financial reporting (internal control) as a basis for
designing our auditing procedures that are appropriate in the circumstances for the purpose of expressing
our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the Organizations' internal control. Accordingly, we do not express an opinion on the effectiveness of
the Organizations' internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies, and therefore, material weaknesses and significant deficiencies may exist that were
not identified. In addition, because of inherent limitations in internal control, including the possibility of
management override of controls, misstatements due to error or fraud may occur and not be detected by
such controls.
A material weakness is a deficiency or a combination of deficiencies in internal control, such that there is
a reasonable possibility that a material misstatement of the Organizations' financial statements will not be
prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal
control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with governance.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. Based on the above -referenced definitions, we consider the following
matters to be significant deficiencies:
TBID Expenditures
Visit Newport Beach Inc.'s TBID contract with the City of Newport Beach states the following on page 7:
ih ORANGE COUNTY 300 Spectrum Center Drive, Suite 300 •Irvine, CA 92618 • 949450.6200 •Fax 449.450.62U1
-./S�)■ SAN DIEGO 9171 Towne Centre Drive, Suite 190 •San Diego, CA 92122.858249.7444 •Fax 858.249.7445 �'Oi�
- `� leading edge alliance
- www.hwcpa.com
Audit Committee of the Board of Directors and Management
August 28, 2018
Page 2 of 3
Staie law refit Tres fti€ assessment funds be expended m a. specific bear, at confemct directly to the
aseessec busincsse3 dm—t is not pto ided to rhose not charged; wid wbich doesnot exceed 'the4
reasonable. cost to the City confer ti R the benefit The %Sel;ces in this A1anagc menr Disuact Plan are,
de;ign-d tc� prom targeted benefits dimcdy to assessed business. These serrtices are Wired not
to sere the general public, but tathei to serre the. specific essed businesses v tbia the Ni3T{=
the proposed act m ties Pit sTeci Willy. -rameted .to increase room : might sale_; f6t assessed
busies ; within the boundaiies of the M3T13IDS and arc ti=wly talored). NBTBID :funds mi
be used exclusively to ' ro�nWde the spevf r beue& of increased tnoim night slles cErca.' to the
businesses. Nor; -assessed businesses E not be feared in 10TBID programs and wTd, not receive
Wes leads from them. The acayrdes laid for from a4sess:trent_ rerenues :are. bless $-emces
00zistitutmg, and piox-idiog T fic be firs to the assessed Wsi e,ses.:To: the extent any nor.-
paying bu,4aess benefits. from TBID prog=as, that peartion of the progm. m ijv& be paid for. with
i3oct-assessment funds. .
Based on our inquiries of management and examination of TBID's accounting records, we determined that
TBID recorded an expense of $150,000 related to TOT's annual payment required under Section 4 "Public
Benefit Funding" of Amendment No. One. Based on the TBID contract excerpt above, we recommend that
the Organizations more thoroughly document the propriety of recording the $150,000 annual payment
required by the TOT contract as an expense on the books of TBID.
Strengthen the Annual Closing Process
Detail schedules and summaries of certain financial statement amounts were not sufficiently reconciled to
the Organizations' accounting system (i.e., lease expense) and certain expense cutoff errors between the
end of fiscal year 2017 and the beginning of fiscal year 2018 were noted during our audit. In addition, we
noted one $75,000 payment made and recorded in fiscal year 2017 that should have been made in fiscal
year 2014. We understand that fiscal year-end is an extremely busy time for the Organizations; thus, we
recommend that the Organizations adhere to a detailed, documented closing checklist/process to ensure the
accuracy, thoroughness and timeliness of the year-end closing process.
Stre"rrfhen Review over Payroll
It is our understanding that the CFO processes payroll, including the payroll of new employees, with no
independent review of the corresponding payroll data for accuracy and overall appropriateness. We
recommend that the payroll be reviewed each pay period by an independent party in order to mitigate the
risk that unauthorized employees, or pay rates, are processed and paid by the Organizations.
Strengthen Organizational Knowledge of US GAAP
Given the complexity surrounding existing US GAAP and several new accounting pronouncements that
will be effected in the upcoming years, we recommend that the Organizations consider strengthening its
knowledge of US GAAP. For example, in the nearAerm, the Organizations will be required to (i)
understand and implement a new nonprofit financial reporting framework, (ii) new revenue recognition
rules and disclosures and (in) a new lease accounting standard. We believe additional trainings for internal
team members and the recruitment of US GAAP-knowledgeable audit committee members will improve
the reliability and accuracy of the Organizations' external financial reporting.
HASI<E LLv�H I ISE
CERTIFIED PUBLIC ACCUUNTANTS I BUSINESSAUVISORS
THE VALUE OF EXPERIENCE
Audit Committee of the Board of Directors and Management
August 28, 2018
Page 3 of 3
Expense ReRjyth,
Based on the audit procedures we performed, we have the following observations and recommendations:
i. Certain expenses were not accounted for consistently between annual periods. For example, VNB
recorded approximately $60,000 of expenses related to the Annual Outlook fiscal year 2016, while
no expenses were recorded in the following year, as they were all recorded by NBC. We
recommend that the Organizations report expenses consistently between annual periods.
ii. Certain payroll expenses (Swain and Sherwin) are allocated to TOT and TBID based on internal
estimates that were determined several years ago. We recommend that the Organizations analyze
these estimates to ensure that TOT and TBID are receiving benefit that approximates the payroll
cost being allocated.
Evaluate Cybersecurity Risks and Threats
Given the frequency and severity of cybersecurity attacks, we recommend that management assess the risks
of such an attack on the Organizations and develop a response plan should an attack occur. Proactive steps
to take now include:
• Exploration and detective work to monitor general cyber threat levels;
• Identifying who is likely to attack you and what they might be trying to steal; and
• Determine vulnerability points where they might be able to penetrate your systems
This communication is intended solely for the information and use of management, the audit committee,
others within the Organizations, and is not intended to be, and should not be, used by anyone other than
these specified parties.
Very truly yours,
HASKELL &WHITE LLP
HAS I<E LLWH ITE
� �. CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS AUVISURS
THE VALUE OF EXPERIENCE
Financial Statements
With Independent Auditors' Report Thereon
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
For The Years Ended June 30, 2017 and 2016
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
TABLE OF CONTENTS
Independent Auditors' Report
Financial Statements:
Statements of Financial Position
Statements of Activities
Statements of Cash Flows
Page
Gd
Notes to Financial Statements 6-13
1 6
j
l
• V' �
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS ADVISORS
THE VALUE OF EXPERIENCE
INDEPENDENT AUDITORS' REPORT
Board of Directors
Newport Beach &Company
We have audited the accompanying fmancial statements of Newport Beach &Company (a
nonprofit organization), which comprise of the statements of financial position as of June 30,
2017 and 2016, and the related statements of activities and cash flows for the years then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audits 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 fmancial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the fmancial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entity's preparation and fair presentation of the financial
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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
ORANGE COUNTY 300 Spectrum Center Drive, Suite 300 •Irvine, CA 92618 • 949.450.6200 •Fax 949.450.6201
SAN DIEGO 9171 Tolvne Centre Drive, Suite 19U •San Diego, CA 92122 • 858.249.7444 •Fax 858.249.7445
www.hwcpa.com
I_ _,�
leading edge alliance
INDEPENDENT AUDITORS' REPORT (CONTINUED)
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Newport Beach & Company as of June 30, 2017 and 2016, and the
changes in its net deficit and its cash flows for the years then ended, in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matter —Related Party Transactions
As discussed in Note 6 to the financial statements, Newport Beach &Company has significant
transactions with a related nonprofit organization and the Organization derives substantially all
of its support and revenue from that related nonprofit organization. Our opinion is not modified
with respect to this matter.
HASKELL &WHITE LLP
Irvine, California
October 4, 2018
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Statements of Financial Position
As of June 30, 2017 and 2016
ASSETS
Current assets:
Cash
Accounts receivable
Related party receivables (Note 6)
Prepaid expenses and other current assets
Total current assets
2017 2016
$ 26,689
55,228
695,168
49,732
826,817
$ 135,525
66,423
212,794
70,728
i; . Kfl
Property and equipment, net (Note 3) 113,046 132,305
$ 939,863 $ 617,775
LIABILITIES AND NET DEFICIT
Current liabilities:
Accounts payable $ 26,220
Related parry payables (Note 6) 626,107
Accrued payroll and related expenses 238,364
Deferred rent 26,438
Total current liabilities 917,129
Deferred rent, net of current portion 63,614
Other noncurrent liabilities 60,000
Total noncurrent liabilities 123,614
Total liabilities 1,040,743
Commitments and contingencies (Note 4)
Unrestricted net deficit (100,880)
Total liabilities and net deficit $ 939,863
See accompanying notes to financial statements.
3
$ 54,413
350,884
198,133
16,531
619,961
63,097
63,097
683,058
(65,283)
$ 617,775
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Statements of Activities
For The Years Ended June 30, 2017 and 2016
Support and revenues:
Service fees from related party (Note 6)
Contribution from related party (Note 6)
Community marketing income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
General and administrative
Depreciation and amortization
Other
Total expenses
Decrease in unrestricted net assets
Net deficit, beginning of year
Net deficit, end of year
2017 2016
$ 2,622,915 $ 2,214,492
- 65,000
339,465 466,555
2,962,380 2,746,047
266,966
287,376
1,769,670
1,550,019
915,334
878,842
41,012
35,339
4,995
921
2,997,977
2,752,497
(35,597) (6,450)
(65,283) (58,833)
$ (100,880) $ (65,283)
See accompanying notes to financial statements.
4
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Statements of Cash Flows
For The Years Ended June 30, 2017 and 2016
2017
Cash flows from operating activities:
Decrease in unrestricted net assets $
(35,597)
Adjustments to reconcile decrease in unrestricted net assets
to net cash (used in) provided by operating activities:
Depreciation and amortization
41,012
Loss on disposal of property and equipment
4,995
Changes in operating assets and liabilities:
Accounts receivable
11,195
Related party receivables
(482,374)
Prepaid expenses and other current assets
20,996
Accounts payable
(28,193)
Related party payables
275,223
Accrued expenses
-
Accrued payroll and related expenses
40,231
Deferred rent
10,424
Other liabilities
60,000
Net cash (used in) provided by operating activities (82,088)
Cash flows from investing activities:
Purchases of property and equipment (26,748)
Net cash used in investing activities (26,748)
Net change in cash (108,836)
Cash, beginning of year 135,525
Cash, end of year $ 26,689
See accompanying notes to financial statements.
5
2016
$ (6,450)
35,339
1,121
11,749
(77,780)
(24,459)
28,719
146,140
(23,105)
15,582
63,377
170,233
(95,769)
(95,769)
74,464
61,061
$ 135,525
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements
For The Years Ended June 30, 2017 and 2016
1. Organization
Nature of Operations
Newport Beach & Company (the "Organization") is a nonprofit organization formed
under the laws of the State of California in 2013. The Organization specializes in
marketing and promotion services related to enhancing the economic development for the
City of Newport Beach (the "City"). The Organization has a service agreement with a
related nonprofit organization that is described in Note 6. The Organization also has
agreements with the City to manage its public access television channel and to provide
services to the Newport Beach Restaurant Association Business Improvement District
and the Balboa Village Merchants Association. By embracing a variety of
neighborhoods, businesses and individual unique voices into a complementary story, the
Organization seeks to strengthen all of its partners, drive new revenue to the City and
enhance the City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City provides management and
consulting services in support of NBTV. Such services include production,
administrative and sponsorship services.
Newport Beach Restaurant Association Business Improvement District ("NB;RA
BID"
The agreement between the Organization and the City provides marketing
planning and programming, public and media relations, research and measurement,
membership, community events services to the City with respect to the NBRA
BID.
Balboa Village Merchants Association ("BVMA")
The agreement between the Organization and BVMA, provides advertising,
promotions and design, online and social media, public relations and e-
communications and other miscellaneous services to BVMA.
Co
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of
accounting in accordance with accounting principles generally accepted in the United
States of America. Net assets and revenues, expenses, gains, and losses are classified
based on the existence or absence of donor -imposed restrictions. As of and for the years
ended June 30, 2017 and 2016, the Organization had no temporarily or permanently
restricted net assets.
Revenues are reported as increases in unrestricted net assets unless use of the related assets
is limited by donor -imposed restrictions. Expenses are reported as decreases in unrestricted
net assets. Gains and losses on investments and other assets are reported as increases or
decreases in unrestricted net assets unless their use is restricted by explicit donor
stipulations or by law. The Organization incurred expenses related to program activities of
$2,195 and $175,902 for the years ended June 30, 2017 and 2016, respectively.
Use of Estimates
The preparation of financial statements requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Significant estimates
made by the Organization's management include, but are not limited to, the collectability
of receivables, the recoverability of long-lived assets and the allocation of certain
expenses to program services and supporting activities. Actual results may differ from
those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments with a maturity of three months
or less when acquired to be cash equivalents. The Organization maintains its cash
balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. As of June
30, 2017 and 2016, and at various times during the years then ended, the Organization's
cash account balances exceeded the FDIC insured limit. To date, no losses have been
incurred. The Organization periodically reviews the quality of the financial institutions it
has deposits with to minimize risk of loss.
7
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for
doubtful receivables based on a review of all outstanding amounts at year end.
Management determines the allowance for doubtful accounts by identifying troubled
accounts based on current and historical experience. Receivables are written off when
deemed uncollectible. For the year ended June 30, 2017, approximately $12,000 of
receivables were deemed uncollectible and were written off. At June 30, 2017 and 2016,
the Organization considers receivables to be fully collectible and accordingly did not
record an allowance for doubtful accounts.
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at fair value when
received. The cost of purchased assets or fair value of donated assets is depreciated using
the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their
estimated useful lives or the related lease term. Maintenance and repairs are charged to
expense as incurred. Significant renewals and betterments are capitalized. It is the
Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated
depreciation or amortization are removed from the accounts and any resulting gain or loss
is reflected in the statement of activities.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the
accompanying statements at their estimated fair market values at date of receipt.
Contributions of services are recognized if the services received create or enhance
nonfinancial assets or require specialized skills, are provided by individuals possessing
those skills and would typically need to be purchased if not provided by donation. Other
volunteer services that do not meet these criteria are not recognized in the financial
statements as there is no objective basis of deriving their value. During the years ended
June 30, 2017 and 2016, the Organization did not have significant contributed materials
and services.
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under
Section 501(c)(6) of the United States Internal Revenue Code and for California state
income taxes under Section 23701(d) of the California Revenue and Taxation Code;
therefore, the Organization has no provision for federal or state income taxes. During the
years ended June 30, 2017 and 2016, the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt
tax return. This process includes an analysis of whether tax positions the Organization
takes with regard to a particular item of income or deduction would meet the definition of
an uncertain tax position under current accounting guidance. The Organization believes
its tax positions are appropriate based on current facts and circumstances. The
Organization's policy is to recognize interest accrued related to unrecognized tax benefits
in interest expense and penalties in operating expenses. At June 30, 2017 and 2016, the
Organization did not have any unrecognized tax benefits. The Organization is no longer
subject to income tax examinations by tax authorities for years before 2014.
Subsequent Events
The Organization has evaluated subsequent events through October 4, 2018, the date the
financial statements were available to be issued. Based upon its evaluation, management
has determined that no subsequent events have occurred that would require recognition in
the accompanying financial statements or disclosure in the notes thereto.
Recent Accounting Pronouncements
In August 2016, the Financial Accounting Standards Board issued Accounting Standard
Update ("ASU") No. 2016-14, Not -for -Profit Entities (Topic 958): Presentation of
Financial Statements of Not -for -Profit Entities. This update simplifies and improves
how a not -for -profit organization classifies its net assets, as well as the information it
presents in financial statements and notes about its liquidity, financial performance, and
cash flows. The new standard will be effective for the Organization for its fiscal year
ending June 30, 2019 and early application is permitted. Management is currently
evaluating the impact of the adoption of this standard.
X
2.
3
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
Summary of Significant Accounting Policies (continued)
Recent Accounting Pronouncements (continued)
In February 2016, the FASB issued ASU No. 2016-02, Leases. This update changes the
accounting for leases, requiring lessees to recognize the assets and liabilities that arise
from all leases on their balance sheets. The new lease standard requires a modified
retrospective transition approach for all leases existing at, or entered into after, the date
of initial application, with an option to use certain transition relief. The new standard
will be effective for reporting periods beginning after December 15, 2019, with early
application permitted. Management is currently evaluating the impact of the adoption of
this standard.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with
Customers (Topic 606), which supersedes existing revenue recognition requirements and
most industry specific guidance. This ASU is a comprehensive new revenue recognition
model that requires an entity to recognize revenue to depict the transfer of goods or
services to a customer at an amount that reflects the consideration it expects to receive in
exchange for those goods or services. This new guidance is effective for annual
reporting periods beginning after December 15, 2018 and entities may use either a full
retrospective or a modified retrospective approach to adopt this new guidance.
Management is currently evaluating which transition approach to use and the impact of
this new guidance on the Organization's financial statements.
Property and Equipment
Property and equipment consists of the following at June 30:
2017
Leasehold improvements $ 79,990
Computer equipment 76,206
Office furniture and fixtures 67,923
224,119
Less accumulated depreciation and amortization (111,073)
$ 113,046
2016
$ 79,990
67,641
67,923
215,554
(83,249)
$ 132,305
10
4.
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
Commitments and Contingencies
Lease Agreements
On March 3, 2003, Visit Newport Beach Inc., a related party, entered into a lease
agreement (the "Agreement") for office space. As a result of the fourth amendment to the
Agreement, the Organization is a party to the Agreement originally entered into by Visit
Newport Beach & Company. Under the terms of the Agreement, each assignee shall be
deemed to assume all lease obligations, and as a result, the Organization may be liable for
future rent payments.
Total rent expense incurred by the Organization under operating leases was $364,790 and
$305,870 for the years ended June 30, 2017 and 2016, respectively, and is included in
general and administrative expenses. Such amounts are net of the amounts paid by the
related party pursuant to the Agreement disclosed in Note 6.
The following is a schedule of future minimum lease payments as of June 30, 2017:
Years Ending
June 30,
2018
$ 361,387
2019
371,278
2020
386,373
2021
404,379
2022
424,075
Thereafter
630,573
2,578.065
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be
required to make payments to a guaranteed or indemnified party, in relation to certain
actions or transactions. The Organization indemnifies its directors, officers, employees
and agents, as permitted under the laws of the State of California. In connection with its
facility leases, the Organization has indemnified its lessor for certain claims arising from
the use of the facilities. The duration of the guarantees and indemnities varies and is
generally tied to the life of the related agreement. These guarantees and indemnities do
11
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
4. Commitments and Contingencies (continued)
Guarantees and Indemnities (continued)
not provide for any limitation of the maximum potential future payments the
Organization could be obligated to make. Historically, the Organization has not been
obligated nor incurred any payments for these obligations and, therefore, no liabilities
have been recorded for these indemnities and guarantees in the accompanying statements
of financial position.
Litigation .
The Organization has claims and litigation arising in the normal course of business.
Management believes the resolution of these matters, if any, will not have a material
adverse effect on the Organization's financial statements.
5. Retirement Plan
The Organization has a 401(k) retirement plan covering all eligible employees. The plan
provides for matching contributions based upon employees' voluntary contributions. The
total expense recorded by the Organization during the years ended June 30, 2017 and
2016 was $80,253 and $65,773, respectively, which is recorded in salaries and benefits
expenses in the accompanying statements of activities.
6. Related Party Transactions
During the years ended June 30, 2017 and 2016, the Organization had significant
transactions with a related nonprofit organization. The related entity, Visit Newport
Beach ("VNB"), initiates, sponsors, promotes and carries out plans, policies and activities
to attract conferences and visitors to the City. VNB was the driving force behind the
formation of the Organization. Pursuant to an Agreement for Services ("Agreement")
dated April 1, 2013, the Organization was appointed by VNB as an exclusive provider of
services that VNB requires to carry out its mission and obligations to the City. In
consideration for these services, VNB agreed to pay a monthly fee of $1,000 through the
beginning of January 2015, at which time the monthly fee was increased to $5,000 per
month, plus reimburse the Organization for all reasonable expenses incurred as a part of
carrying out its duties to VNB, including rent, payroll and related benefits, and other
direct marketing costs. For the years ended June 30, 2017 and 2016, the Organization
allocated and billed $2,622,915 and $2,274,492 to VNB and such amounts are recorded
as service fees from related party in the accompanying statements of activities. The
Agreement expired in March 2016 and contained the option for one three-year renewal.
12
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
6. Related Party Transactions (continued)
The Organization renewed this agreement with a five-year renewal period expiring in
March 2021. The renewed agreement also removed the clause for the monthly payment
of $1,000 to the Organization from VNB.
During the year ended June 30, 2017 and 2016, the Organization received contributions
from VNB of $0 and $65,000, respectively.
As of June 30, 2017 and 2016, the Organization has related party receivables of $695,168
and $212,794, respectively, and payables of $626,107 and $350,884, respectively, in the
accompanying statements of financial position. Such amounts do not bear interest, are not
collateralized, and have no stated repayment terms.
13
V tS1T e7w ort
E A C HI NC.
September 28, 2018
Haskell & White LLP
300 Spectrum Center Drive
Suite 300
Irvine, CA 92618
Audit Committee of the Board of Directors
Newport Beach & Company and Visit Newport Beach Inc.
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
Re: Response to FY2017 SAS 115 - Internal Controls Letter
This communication is intended solely for the information and use of management, the audit
committee, others within the Organizations, and is not intended to be, and should not be, used by
anyone other than these specified parties. This response letter addresses items noted in the FY2017
SAS 115.
TBID Expenditures
The Annual Cultural Sponsorship to the City of Newport Beach was included with the revised TOT
Agreement of 2014. The payment of such, however, has been included within the TBID financial
statements as an acknowledgement that the support of cultural amenities within the City of Newport
Beach attracts new and recurring group meeting business to the TBID hotel partners. Although this
payment has been budgeted for and presented in the monthly financial statements which are
approved by the TBID Board of Directors, the presence of this payment will be on the next TOT Board
Meeting for motion and approval as well as the next TBID Board of Directors meeting as corrective
action.
Annual Closing Process
The Annual Closing process is one that is well -documented through prior audit records and schedules
and can indeed change as new requirements are placed in service. The organization acknowledges
that documentation is not only a prudent internal process but one that should be regularly reviewed
and updated.
The 2014 City of Newport Beach Cultural Sponsorship that was not paid was discussed prior to field
work with the Audit Manager. The sponsorship had not been invoiced by the City nor was
communication received that there was an outstanding receivable - in fact, the City was not aware
there was an outstanding receivable until a contract review in FY17. The organization, as a course of
action, will be storing all documents in a central server location for an annual review by the Executive
Team.
Strengthen Review Over Payroll
Payroll is a multi -step process that has several controls. Managers have visibility over all of their
subordinate files - including salary, paid time off balances, and merit increases. Hourly timesheets
are reviewed and approved every payroll cycle. The CEO has visibility of all employee files and may
also access and review reports.
The processing of payroll and review prior to submission is completed by the CFO but is recorded in
the G/L by the financial coordinator as a segregation of duties.
Employees have access to their payroll records at all times and are encouraged to review payroll
every two weeks to ensure accuracy.
Strengthen Organizational Knowledge of U.S. GAAP
CFO is a Certified Management Accountant that requires over 30 hours of CPE credits every year -
many of which pertain to U.S. GAAP, external controls and processes, and IFRS standards. As an
external audit is completed every year, this time is used an opportunity to enhance the knowledge of
staff and audit committee members on new impacts that may affect financial reporting or processes.
Expense Reporting
The culture of continuous improvement is evident in systems innovations in recent years. Date and
time stamped invoice approvals have been in place for two years. There is a check and balance with
the Financial Coordinator that enters in bills and subsequent approval of those by the responsible
party.
Allocations of salary and benefits must be based on a general formula due to the complex intra-
relationship of the related companies. This may be reviewed as situations change but at the present
time the allocation is appropriate.
Evaluating Cybersecurity and Threats
Information technology is a key component of the success of Visit Newport Beach Inc. Long-term IT
consultants are advisors on new technologies and provide a resource for the leadership team to make
decisions. Most recently, new firewalls and backup processes were implemented and a consultant
with a strong background in cybersecurity was brought in to complete a thorough analysis of the
systems in place. His recommendations were actionable and while the company had already been
doing most of these, new processes such as secure storing of passwords in a neutral location were
adopted.
Financial Statements
With Independent Auditors' Report Thereon
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
For The Years Ended June 30, 2017 and 2016
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
TABLE OF CONTENTS
Independent Auditors' Report
Financial Statements:
Statements of Financial Position
Statements of Activities
Statements of Cash Flows
Notes to Financial Statements
Supplemental Information:
3
4
5
6-14
Schedule I — Statement of Financial Position by Funding Source 15
Schedule II — Statement of Activities by Funding Source 16
,F
,V
.
Board of Directors
Visit Newport Beach Inc.
HAS I<E L�������I 1 I� � ��-
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS ADVISORS
THE VALUE OF EXPERIENCE
INDEPENDENT AUDITORS' REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a
nonprofit organization), which comprise of the statements of financial position as of June 30,
2017 and 2016 and the related statements of activities and cash flows for the years then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audits 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 financial, statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entity's preparation and fair presentation of the financial
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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
ORANGE COUNTY 300 Spectrum Center Drive, Suite 30D •Irvine, CA 92618 • 949.450.6200 •Fax 949.450.6201
SAN DIEGO 9ll1 Tovvne Centre Drive, Suite 190 •San Diego, CA 92122 • 858.249.7444 •Fax 858.249.7445
www.hwcpa.com
0� ®.®
leading edge alliance
► 1 ► 1 _ ► _ :�i117Y r17 . i �1 i7�11�[�LI]►`I N INIU M 1]`,
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Visit Newport Beach Inc. as of June 30, 2017 and 2016, and the changes
in its net assets and its cash flows for the years then ended, in accordance with accounting
principles generally accepted in the United States of America.
Emphasis of Matter —Related Party Transactions
As discussed in Note 6 to the financial statements, Visit Newport Beach Inc. has significant
transactions with a related nonprofit organization. Our opinion is not modified with respect to
this matter.
Report on the Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information contained in Schedules I and II on pages 15-16
is presented for purposes of additional analysis and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
financial statements or the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the financial
statements as a whole.
HASKELL &WHITE LLP
Irvine, California
October 4, 2018
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Statements of Financial Position
As of June 30, 2017 and 2016
2017
2016
ASSETS
Current assets:
Cash and cash equivalents
$ 2,245,493
$ 1,300,594
Investment
-
101
Accounts receivable
5,831
9,286
Related party receivables (Note 6)
626,107
350,884
Prepaid expenses and other current assets
270,822
274,756
Total current assets
3,148,253
1,935,621
Property and equipment, net
48,283
88,683
Website development costs, net
6,209
37,136
Deposits and other assets
39,619
69,619
Total assets
$ 3,242,364
$ 2,131,059
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable
$ 208,629
$ 201,133
Related party payables (Note 6)
695,168
212,794
Accrued expenses
7,215
24,676
Accrued payroll and related expenses
148,302
148,147
Deferred compensation
3,710
11,130
Group booking incentive reserve
58,700
58,564
Deferred rent
5,883
6,128
Deferred revenue
-
32,378
Total liabilities
Commitments and contingencies (Note 4)
Unrestricted net assets
Total liabilities and net assets
1,127,607
114,757
$ 3,242,364
694,950
1,436,109
$ 2,131,059
See accompanying notes to financial statements and independent auditors' report.
3
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Statement of Activities
For The Years Ended June 30, 2017 and 2016
Support and revenues:
Service fee revenues
Interest income
Total support and revenues
Expenses:
Marketing - Newport Beach & Company (Note 6)
Marketing
General and administrative
Salaries and benefits
Depreciation and amortization
Related party contributions (Note 6)
Other expenses
Total expenses
Change in unrestricted net assets
Net assets, beginning of year
Net assets, end of year
2017
$ 8,937,545
3,520
2016
$ 8,584,600
5,139
8,941,065 8,589,739
2,622,915
2,214,492
3,864,882
4,514,035
399,547
339,143
1,302,023
1,310,373
73,050
82,702
-
65,000
-
107,806
8,262,417 8,633,551
678,648 (43,812)
1,436,109 1,479,921
$ 2,114,757 $ 1,436,109
See accompanying notes to financial statements and independent auditors' report.
4
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Statements of Cash Flows
For The Years Ended June 30, 2017 and 2016
Cash flows from operating activities:
Change in unrestricted net assets
Adjustments to reconcile change in unrestricted net assets to
net cash provided by (used in) operating activities:
Depreciation and amortization
Interest earned on investment
Changes in operating assets and liabilities:
Accounts receivable
Related party receivables
Prepaid expenses and other current assets
Deposits and other assets
Accounts payable
Related party payables
Accrued expenses
Accrued payroll and related expenses
Deferred compensation
Group booking incentive reserve
Deferred rent
Deferred revenue
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Sale of investment
Purchases of property and equipment
Net cash (used in) provided by investing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
2017
$ 678,648
73,050
3,455
(275,223)
3,934
30,000
7,496
482,374
(17,461)
155
(7,420)
136
(245)
(32,378)
946,521
101
(1,723)
(1,622)
944,899
1,300,594
$ 2,245,493
2016
$ (43,812)
82,702
(2,978)
(9,286)
(146,140)
72,388
30,000
(435,439)
77,780
(121,859)
(20,159)
11,130
58,564
(12,953)
32,378
(427,684)
504,797
(13,969)
490,828
63,144
1,237,450
$ 1,300,594
See accompanying notes to financial statements and independent auditors report.
5
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements
For The Years Ended June 30, 2017 and 2016
1. Organization
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a nonprofit organization formed under
the laws of the State of California. The Organization currently has an agreement ("TOT
Agreement") with the City of Newport Beach (the "City") through December 31, 2024 to
promote tourism and serve the needs of visitors to the City. Under the terms of the TOT
Agreement, the Organization is responsible to develop, plan, carry out and supervise a
program to market and promote the Newport Beach brand and to promote tourism in, and
serve the needs of, visitors to the City, as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
Transient Occupancy Tax ("TOT")
The City collects a Transient Occupancy Tax, as well as a Visitor's Service Fee, applied
to the transient rental of lodging rooms (collectively, the "TOT"). The City pays the
Organization 18% of the annual TOT in monthly installments. As the Organization is not
entitled to its share of the TOT until paid by the City, amounts are recognized when
received.
The City shall have the right, in its sole discretion, to adjust the payment (increase or
decrease the percentage of TOT paid to the Organization) as part of its once -annual
budget adoption process for any reason after notice to the Organization and an
opportunity for the Organization to formally comment on the adjustment. For the years
ended June 30, 2017 and 2016, the Organization received approximately 54% of its
service fee revenues from the City through the TOT. The City has the right to terminate
the TOT Agreement, without cause, by giving the Organization three hundred sixty-five
days' written notice of its intention to terminate. Should the City reduce or stop its
funding to the Organization due to the Organization's default or termination of the
Agreement, the Organization's operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was
established April 28, 2009, for a five-year term with the expiration date of April 28,
2014. On February 1, 2014, pursuant to the Management District Plan (the "Plan"), the
NBTBID was extended through December 31, 2024. The NBTBID is funded by
assessments levied on participating lodging businesses within a specified district. The
assessments are restricted for use for sales promotion and marketing programs to market
the City as a tourist, meeting and event destination as outlined in the Plan. Either party
Co
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
1. Organization (continued)
Tourism Business Improvement District ("TBID") (continued)
may terminate this agreement by providing the other party ninety calendar days' written
notice prior to the effective date of termination. As the Organization is not entitled to its
share of the assessments collected until paid by the City, amounts are recognized when
received. For the years ended June 30, 2017 and 2016, the Organization received
approximately 46% of its service fee revenues from the City through TBID assessments.
As of June 30, 2017 and 2016, the NBTBID is represented by eight (8) hotels within the
City which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the
receipts annually for the collection of the assessments and disbursements of the NBTBID.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of
accounting in accordance with accounting principles generally accepted in the United
States of America. Net assets and revenues, expenses, gains, and losses are classified
based on the existence or absence of donor -imposed restrictions. As of and for the years
ended June 30, 2017 and 2016, the Organization had no temporarily or permanently
restricted net assets.
Revenues are reported as increases in unrestricted net assets unless use of the related assets
is limited by donor -imposed restrictions. Expenses are reported as decreases in unrestricted
net assets. Gains and losses on investments and other assets are reported as increases or
decreases in unrestricted net assets unless their use is restricted by explicit donor
stipulations or by law. The Organization's expenses related to program activities totalled
$3,897,072 and $4,563,443 for the years ended June 30, 2017 and 2016, respectively.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Significant estimates
made by the Organization's management include, but are not limited to, the collectability
of receivables and the allocation of certain expenses to program services and supporting
activities. Actual results may differ from those estimates.
7
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Cash and Cash Equivalents
The Organization considers all highly liquid investments with a maturity of three months
or less when acquired to be cash equivalents. The Organization maintains its cash
balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. As of June
30, 2017 and 2016, and at various times during the years then ended, the Organization's
cash account balances exceeded the FDIC insured limit. To date, no losses have been
incurred. The Organization periodically reviews the quality of the financial institutions it
has deposits with to minimize risk of loss.
Fair Value
Accounting guidance defines fair value as the exchange price that would be received for
an asset or paid to transfer a liability (an exit price) in the principal, or in the absence of a
principal market, the most advantageous market for the asset or liability, in an orderly
transaction between market participants on the measurement date. Accounting guidance
establishes a fair value hierarchy that requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The
three levels of inputs in priority that may be used to measure fair value are as follows:
Level 1—Quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than quoted prices included within Level 1, such
as quoted prices for similar assets or liabilities; quoted prices in markets that are not
active; inputs other than quoted prices that are observable for the asset or liability
(such as interest rates and yield curves, credit risks, and default rates) or other inputs
that are principally derived from or corroborated by observable market data by
correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and
that are significant to the fair value of the assets or liabilities.
No assets or liabilities required fair value measurements during the years ended June 30,
2017 and 2016.
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at fair value when
received. The cost of purchased assets or fair value of donated assets is depreciated using
the straight-line method over the estimated useful lives of the related assets, which range
from three to seven years. Leasehold improvements are amortized over the lesser of their
estimated useful lives or the related lease term. Maintenance and repairs are charged to
expense as incurred. Significant renewals and betterments are capitalized. It is the
Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated
depreciation or amortization are removed from the accounts and any resulting gain or loss
is reflected in the statement of activities.
Website Development Costs
The Organization accounts for the costs of developing its website by capitalizing the
costs during the application development stage when it is probable that the project will be
completed. Website development costs are amortized on a straight-line basis over their
estimated useful lives when completed, which approximate three years.
For the years ended June 30, 2017 and 2016, the Organization recorded amortization
expense on Website development costs totaling $30,927 and $46,333, respectively.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes
in circumstances indicate that the carrying value of an asset may not be recoverable. If
the estimated future cash flows (undiscounted and without interest charges) from the use
of an asset are less than the carrying value, a write -down would be recorded to reduce the
related asset to its estimated fair value. At June 30, 2017 and 2016, the Organization's
management believes there is no impairment of its long-lived assets. There can be no
assurance, however, that market conditions will not change or demand for the
Organization's services will continue, which could result in impairment of long-lived
assets in the future.
X
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the
accompanying statements at their estimated fair values at date of receipt. Contributions
of services are recognized if the services received create or enhance nonfinancial assets
or require specialized skills, are provided by individuals possessing those skills and
would typically need to be purchased if not provided by donation. Other volunteer
services that do not meet these criteria are not recognized in the financial statements as
there is no objective basis of deriving their value.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under
Section 501(c)(6) of the United States Internal Revenue Code and for California state
income taxes under Section 23701(d) of the California Revenue and Taxation Code;
therefore, the Organization has no provision for federal or state income taxes. During the
years ended June 30, 2017 and 2016, the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt
tax return. This process includes an analysis of whether tax positions the Organization
takes with regard to a particular item of income or deduction would meet the definition of
an uncertain tax position under current accounting guidance. The Organization believes
its tax positions are appropriate based on current facts and circumstances. The
Organization's policy is to recognize interest accrued related to unrecognized tax benefits
in interest expense and penalties in operating expenses. At June 30, 2017 and 2016, the
Organization did not have any unrecognized tax benefits. The Organization is no longer
subject to income tax examinations by tax authorities for years before 2014.
Subsequent Events
The Organization has evaluated subsequent events through October 4, 2018, the date the
financial statements were available to be issued. Based upon its evaluation, management
has determined that no subsequent events have occurred that would require recognition in
the accompanying financial statements or disclosure in the notes thereto.
10
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Recent Accounting Pronouncements
In August 2016, the Financial Accounting Standards Board issued Accounting Standard
Update ("ASU") No. 2016-14, Not -for -Profit Entities (Topic 958): Presentation of
Financial Statements of Not -for -Profit Entities. This update simplifies and improves
how a not -for -profit organization classifies its net assets, as well as the information it
presents in financial statements and notes about its liquidity, financial performance, and
cash flows. The new standard will be effective for the Organization for its fiscal year
ending June 30, 2019 and early application is permitted. Management is currently
evaluating the impact of the adoption of this standard.
In February 2016, the FASB issued ASU No. 2016-02, Leases. This update changes the
accounting for leases, requiring lessees to recognize the assets and liabilities that arise
from all leases on their balance sheets. The new lease standard requires a modified
retrospective transition approach for all leases existing at, or entered into after, the date
of initial application, with an option to use certain transition relief. The new standard
will be effective for reporting periods beginning after December 15, 2019, with early
application permitted. Management is currently evaluating the impact of the adoption of
this standard.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with
Customers (Topic 606), which supersedes existing revenue recognition requirements and
most industry specific guidance. This ASU is a comprehensive new revenue recognition
model that requires an entity to recognize revenue to depict the transfer of goods or
services to a customer at an amount that reflects the consideration it expects to receive in
exchange for those goods or services. This new guidance is effective for annual
reporting periods beginning after December 15, 2018 and entities may use either a full
retrospective or a modified retrospective approach to adopt this new guidance.
Management is currently evaluating which transition approach to use and the impact of
this new guidance on the Organization's financial statements.
11
3.
4.
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
Property and Equipment
Property and equipment consists of the following at June 30:
Leasehold improvements
Computer equipment
Office furniture and fixtures
Less accumulated depreciation and amortization
2017 2016
38,468 $ 36,745
20,968 20,968
110,110 110,110
169,546 167,823
(121,263) (79,140)
$ 48,283 $ 88,683
For the years ended June 30, 2017 and 2016, the Organization recorded depreciation on
property and equipment totaling $42,123 and $36,369, respectively.
Commitments and Contingencies
Lease Agreements
On March 3, 2003, the Organization entered into a lease agreement (the "Agreement") for
office space. As a result of the fourth amendment to the Agreement, the Organization
assigned its rights to Newport Beach & Company, a related party. Under the terms of the
Agreement, this assignment does not relieve the Organization of its lease obligations. As a
result, the Organization continues to be liable for future rent payments.
Total rent expense incurred by the Organization under operating leases was $96,780 and
$82,230 for the years ended June 30, 2017 and 2016, respectively, and is included in
general and administrative expenses. Such amounts are net of the amounts paid by the
related party pursuant to the Agreement disclosed in Note 6.
The following is a schedule of future minimum lease payments as of June 30, 2017:
Years Ending
June 30.
2018
2019
2020
2021
2022
Thereafter
$ 100,310
103,056
107,761
111,315
116,784
175,028
$ 714,254
12
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
4. Commitments and Contingencies (continued)
Commitments
The Organization has a commitment related to its usage of webcams. The related
agreement is for one year and auto renews on annual basis. The monthly cost of $1,669 is
recorded in marketing expenses in the accompanying statements of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on
June 1, 2014 through December 31, 2024, to the City to be spent on programs or
activities that benefit the public.
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be
required to make payments to a guaranteed or indemnified party, in relation to certain
actions or transactions. The Organization indemnifies its directors, officers, employees
and agents, as permitted under the laws of the State of California. Pursuant to the TOT
Agreement, the Organization also indemnifies the City and all of its related boards,
councils, officers, employees, and volunteers from claims related to the conduct of the
Organization or any of its officers, employees, or associated individuals. In connection
with its facility leases, the Organization has indemnified its lessor for certain claims
arising from the use of the facilities. The duration of the guarantees and indemnities
varies and is generally tied to the life of the related agreement. These guarantees and
indemnities do not provide for any limitation of the maximum potential future payments
the Organization could be obligated to make. Historically, the Organization has not been
obligated nor incurred any payments for these obligations and, therefore, no liabilities
have been recorded for these indemnities and guarantees in the accompanying statements
of financial position.
Liti ag tion
The Organization has claims and litigation arising in the normal course of business.
Management believes the resolution of these matters, if any, will not have a material
adverse effect on the Organization's financial statements.
5. Retirement Plan
The Organization has a 401(k) retirement plan covering all eligible employees. The plan
provides for matching contributions based upon employees' voluntary contributions. The
total expense recorded by the Organization during the years ended June 30, 2017 and
2016 was $62,949 and $59,217, respectively, and is included in salaries and benefits.
13
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
6. Related Party Transactions
During the year ended June 30, 2017, the Organization had significant transactions with a
related nonprofit organization. The related entity, Newport Beach & Company ("NB &
Co."), specializes in marketing services that promote economic development within the
City. Pursuant to an Agreement for Services ("Agreement") dated April 1, 2013, the
Organization appointed NB & Co. as an exclusive provider of services that the
Organization requires to carry out its mission and obligations to the City. In
consideration for these services, the Organization agreed to pay NB & Co. a monthly fee
of $1,000 through the beginning of January 2015, at which time the monthly fee was
increased to $5,000 per month, plus reimburse NB & Co. for all reasonable expenses
incurred by it in carrying out its duties to the Organization, including rent, payroll and
related benefits, and other direct marketing costs. For the years ended June 30, 2017 and
2016, the Organization was allocated costs of $2,622,915 and $2,279,492, respectively,
by NB & Co. NB & Co.'s costs for the years ended June 30, 2017 and 2016 were
allocated to the Organization as follows: $161,606 and $126,503, respectively, of direct
marketing, $1,520,254 and $1,389,174, respectively, of salaries and benefits, $364,000
and $299,413, respectively, of lease expenses, and $577,055 and $464,402, respectively,
of general and administrative. The Agreement expired in March 2016 and contained the
option for one three-year renewal. The Organization renewed this agreement with a five-
year renewal period expiring in March 2021. The renewed agreement also removed the
clause for the monthly payment of $1,000 to NB & Co. from the Organization.
During the years ended June 30, 2017 and 2016, the Organization contributed $0 and
$65,000 to this related party, which is recorded as related party contributions in the
accompanying statements of activities.
As of June 30, 2017 and 2016, the Organization had related party receivables of $626,107
and $350,884, respectively, and payables of $695,168 and $212,794, respectively, in the
accompanying statements of financial position. Related amounts do not bear interest, are
not collateralized and have no stated repayment terms.
14
Supplemental Information
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Schedule I - Statement of Financial Position by Funding Source
As of June 30, 2017
Current assets:
Cash and cash equivalents
Accounts receivables
Related party receivable
Prepaid expenses and other current assets
Total current assets
TOT* TBID Eliminations Total
$ 1,348,505 $ 896,988 $ - $ 2,245,493
581 5,250 - 5,831
621,402 18,895 (14,190) 626,107
130,604 140,218 - 270,822
2,101,092 1,061,351 (14,190) 3,148,253
Property and equipment, net
1,462
46,821
-
48,283
Website development costs, net
6,209
-
-
6,209
Deposits and other assets
39,619
-
-
39,619
$ 2,148,382
$ 1,108,172
$ (14,190)
$ 3,242,364
Current liabilities:
Accounts payable
$ 77,593
$ 131,036
$ -
$ 208,629
Related partypayables
425,058
284,300
(14,190)
695,168
Accrued expenses
2,215
5,000
-
7,215
Accrued payroll and related expenses
2,728
145,574
-
148,302
Deferred compensation
3,710
-
-
3,710
Group booking incentive reserve
-
58,700
-
58,700
Deferred rent
-
5,883
-
5,883
Total liabilities
511,304
630,493
(14,190)
1,127,607
Unrestricted net assets
1,637,078
477,679
-
2,114,757
Total liabilities and net assets
$ 2,148,382
$ 1,108,172
$ (14,190)
$ 3,242,364
* Includes balances for other marketing and administrative costs.
See independent auditors' report.
15
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Schedule II — Statement of Activities by Funding Source
For The Year Ended June 30, 2017
TOT* TBID Eliminations Total
Support and revenues:
Service fee revenues
Interest income
Total support and revenues
Expenses:
Marketing - Newport Beach & Company (Note 6)
Marketing
General and administrative
Salaries and benefits
Depreciation and amortization
Total expenses
Change in unrestricted net assets
Net assets, beginning of year
Net assets, end of year
$ 4,863,801
$ 4,073,744 $
- $ 8,937,545
2,957
563
- 3,520
4,866,758
4,074,307
- 8,941,065
2,461,309
161,606
- 2,622,915
2,130,425
1,734,457
- 3,864,882
107,300
292,247
- 399,547
61,591
1,240,432
- 1,302,023
37,471
35,579
- 73,050
4,798,096
3,464,321
- 8,262,417
68,662
609,986
- 678,648
1,568,416
(132,307)
- 1,436,109
$ 1,637,078
$ 477,679 $
- $ 2,114,757
* Includes balances for other marketing and administrative costs.
See independent auditors' report.
16
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report
For the Year Ended June 30, 2017
Management Statement Regarding Compliance With Certain Provisions of the Agreement
Between the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion,
Branding, and Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are
responsible for complying with the provisions of Section 4 of the Agreement Between the City
of Newport Beach and Visit Newport Beach Inc. (collectively, the "Parties") for Tourism
Promotion, Branding, and Marketing Services (the "Agreement") in that funds received by the
Organization pursuant to this Agreement were expended in accordance with this Agreement. We
are responsible for establishing and maintaining effective internal controls over compliance with
the provisions of Section 4 of the Agreement_ We have performed an evaluation of the
Organization's compliance with the provisions of Section 4 of the Agreement regarding fluids
expended during the years ended June 30, 2017 and 2016, as summarized in the attached
Expenditures Report. Based on this evaluation, we assert that the Organization was in
compliance with the provisions of Section 4 of the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise
a program to market and promote the Newport Beach brand and to promote tourism in, and serve
the needs of, visitors to Newport Beach as well as increase the amount of TOT collected through
their promotional activities ("Services"). Subject to the foregoing sentence, the Services shall, at
a minimum, include the following: (a) the maintenance of suitable office space and the
employment of competent personnel to carry out the promotional, branding and marketing
duties; (b) the preparation of brochures, publications, guides, on-line promotions, social network
efforts, and other marketing materials and information that inform prospective tourists and
visitors of the recreational activities, cultural assets, shopping and dining opportunities, night-
time stay opportunities, and natural beauty of Newport Beach; (c) the dissemination of
information described in this section by way of the media, direct mail, handouts, social
networking, websites, smart phone applications, or other means of distribution; (d) the
development and implementation of specific marketing programs designed to increase awareness
of the Newport Beach brand and to increase business and visitor trade in Newport Beach; and (e)
any additional Services when proposed by the City which are consistent with the promotion of
tourism and the Newport Beach brand which are mutually agreeable and acceptable to the
Parties.
3
Expenditures Report
With Independent Accountants' Report Thereon
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
For The Years Ended June 30, 2017 and 2016
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
CONTENTS
Independent Accountants' Report
Management Statement Regarding Compliance With Certain Provisions of the
Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services 2
Expenditures Report for the Years Ended June 30, 2017 and 2016 3-8
,,
HAS I<E LL'���� ��`��� I IG
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS ADVISORS
THE VALUE OF EXPERIENCE
INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc., a nonprofit organization (the "Organization"), complied
with the provisions in Section 4 of the Agreement Between the City of Newport Beach and Visit
Newport Beach Inc. for Tourism Promotion, Branding, and Marketing Services dated September
27, 2011, (the "Agreement") regarding the Expenditures Report, summarizing the expenditures
of funds received pursuant to the Agreement during the years ended June 30, 2017 and 2016.
Management is responsible for the Organization's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the Organization's
compliance based on our examination.
Our examination was conducted in accordance with the attestation standards issued by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion
is fairly stated, in all material respects. An examination involves performing procedures to obtain
evidence about management's assertion. The nature, timing, and extent of the procedures
selected depend on our judgment, including an assessment of the risks of material misstatement
of management's assertion, whether due to fraud or error. We believe that the evidence we
obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the Expenditures Report for the years ended
June 30, 2017 and 2016, is fairly stated, in all material respects.
This report is intended solely for information and use of the City of Newport Beach and Visit
Newport Beach Inc. and is not intended to be and should not be used by anyone other than the
specified parties.
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HASKELL &WHITE LLP
Irvine, California
October 4, 2018
ORANGE COUNTY 300 Spectrum Center Drive, Suite 300 •Irvine, CA 92618 • 949.450.6200 •Fax 949.450.6201
SAN DIEGO 9171 To��ne Centre Drive, Suite 190 •San Diego, CA 92122 •858.244.7444 •Fax 858.249.7445
www.hwcpa.com
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VISIT ew OYt
E A C H iroc.
Management Statement Regarding Compliance With Certain Provisions of the Agreement
Between the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion,
Branding, and Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are responsible
for complying with the provisions of Section 4 of the Agreement Between the City of Newport
Beach and Visit Newport Beach Inc. (collectively, the "Parties") for Tourism Promotion,
Branding, and Marketing Services (the "Agreement") in that funds received by the Organization
pursuant to this Agreement were expended in accordance with this Agreement. We are responsible
for establishing and maintaining effective internal controls over compliance with the provisions of
Section 4 of the Agreement. We have performed an evaluation of the Organization's compliance
with the provisions of Section 4 of the Agreement regarding funds expended during the years
ended June 30, 2017 and 2016, as summarized in the attached Expenditures Report. Based on this
evaluation, we assert that the Organization was in compliance with the provisions of Section 4 of
the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise
a program to market and promote the Newport Beach brand and to promote tourism in, and serve
the needs of, visitors to Newport Beach as well as increase the amount of TOT collected through
their promotional activities ("Services"). Subject to the foregoing sentence, the Services shall, at
a minimum, include the following: (a) the maintenance of suitable office space and the
employment of competent personnel to carry out the promotional, branding and marketing duties;
(b) the preparation of brochures, publications, guides, on-line promotions, social network efforts,
and other marketing materials and information that inform prospective tourists and visitors of the
recreational activities, cultural assets, shopping and dining opportunities, night-time stay
opportunities, and natural beauty of Newport Beach; (c) the dissemination of information
described in this section by way of the media, direct mail, handouts, social networking, websites,
smart phone applications, or other means of distribution; (d) the development and implementation
of specific marketing programs designed to increase awareness of the Newport Beach brand and
to increase business and visitor trade in Newport Beach; and (e) any additional Services when
proposed by the City which are consistent with the promotion of tourism and the Newport Beach
brand which are mutually agreeable and acceptable to the Parties.
Visit
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report
For the Year Ended June 30, 2017
Expenses
Marketing - Newport Beach & Company
68001 • NB&Co Fees $ 2,461,309 A
Total Marketing - Newport Beach & Company 2,461,309
Marketing
66101 • Advertising -Consumer
427,213
66102 Advertising - Local Events
133,661
66103 Advertising Promotions - Media
250
66104 Advertising Promotions - Non -Media
500
66105 Advertising Consulting Fees
101,500
66202 Ad Production
137,246
66203 Creative Design/Development
41,638
66205 PhotographyNideo Production
34,022
66206 Other Contingencies
736
66212 Community Sponsorships
10,504
67101 Research
155,142
67102 Christmas Boat Parade
53,166
67103 Community Partner Events
44,743
67105 Awards
245
67107 Promotional Items
2,686
67108 Company -Sponsored Events
91,422
67109 Hospitality Training
334
67302 Maps
44
67309 Marketing Plan
7,870
67311 Collateral Production Expenses
35,164
67312 Collateral Distribution
25,618
67401 International Brand Awareness Fees
100,391
67402 International TTI FAM Tours
2,002
67403 International Promotions
131,258
67404 International Trade Shows
1,927
67405 International Airfare
9,845
67406 International Accommodations
15,124
67407 International Meals
283
67408 International Transportation Costs
1,219
67409 International Other Travel Costs
260
67410 International Business Meals/Entertainment
528
67501 Social Media
168
67502 Website Maintenance
91,527
67503 Online Search Advertising
158,244
67504 Digital Advertising
18,773
67506 Mobile Application
10,500
67508 Website Redesign Expenses (non -amortizable)
11,167
67511 Digital Lifestyle Channel Production
12,561
67601 Media Services
39,347
67602 Media FAM Tours
40,750
3
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2017
67603 Media Promotions 217
67604 PR/Media Consulting Fees 14,597
67605 Media Special Programs 156,445
67608 Digital Assets/Media Library 9,588
Total Marketing 2,130,425
General and Administrative
63200 Workers Compensation Insurance
1,469
63300 Board of Directors Insurance
8,700
64100 Office Supplies
168
64101 Stationary
134
64125 Computer Software (non-deprec)
7,581
64130 Voice and Data - Office
1,098
64145 Shipping Charges
298
64150 Bank Fees
469
64160 Membership Dues
72,113
64190 Business Licensing and Fees
10
64201 Audit Fees
5,180
64202 Tax Preparation Fees
1,100
64204 • Legal Fees
1,155
64205 • Payroll Processing Service
2,623
64206 • Independent Contractors
2,293
64600 • Business Meals/Entertainment
288
65100 • Airfare
2,621
Total General and Administrative
107,300
Salaries and Benefits
61010 Salaries and Wages
52,391
61030 Payroll Tax Expenses
5,817
61040 Accrued PTO Expense
686
61140 Retirement Plan (401k)
2,697
Total Salaries and Benefits
61,591
Depreciation and Amortization
64300 Depreciation Expense 6,544
67508 Website Redesign Expenses (amortizable) 30,927
Total Depreciation and Amortization 37,471
Total Expenses 4,798,096
Other Expenditures:
Change in prepaid expenses and current liabilities, net (400,219)
Total 2017 Expenditures $ 4,397,877
2
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2017
NOTES:
A Consists of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries & Benefits $ 1,565,367
G&A Overhead 895,942
$ 2,461,309
5
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report
For the Year Ended June 30, 2016
Expense
61000 • Salaries
61010 Salaries $ 51,605
61030 Payroll Tax Expenses 6,299
Total 61000 • Salaries 57,904
61100 • Benefits
61140 Retirement Plan (401k) 1,191
61160 Personnel Benefit 225
Total 61100 • Benefits 1,416
62000 • Office Expenses
62110 • Office Repairs and Maintenance 69
Total 62000 • Office Expenses 69
63000•Insurance
63300 • Board of Directors Insurance 8,693
Total 63000 • Insurance 8,693
64000 • Operating Expenses
64100 Office Supplies
295
64101 Stationary
194
64115 Office Equipment (non-deprec)
93
64125 Computer Software (non-deprec)
400
64130 Voice and Data - Office
906
64145 Shipping Charges
411
64150 Bank Fees
687
64160 Membership Dues
77,867
64175 Governance Meeting Expenses
10
64190 Business Licensing and Fees
30
64200 • Professional Services
64201 Audit Fees
4,460
64203 Recruiting Fees
75
64205 Payroll Processing Service
2,513
Total 64200 • Professional Services
7,048
64300 • Depreciation Expense
5,002
64310 Contribution Expense
100
64500 Other Operating Expense
10,000
Total 64000 • Operating Expenses
103,044
65000 • Travel
65405 • Mileage 4
Total 65000 • Travel 4
2
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2016
Expense
61000 • Salaries
61010 Salaries $ 51,605
61030 Payroll Tax Expenses 6,299
Total 61000 • Salaries 57,904
61100 • Benefits
61140 Retirement Plan (401k) 1,191
61160 Personnel Benefit 225
Total 61100 • Benefits 1,416
62000 • Office Expenses
62110 • Office Repairs and Maintenance 69
Total 62000 • Office Expenses 69
63000•Insurance
63300 • Board of Directors Insurance 8,693
Total 63000 • Insurance 8,693
64000 • Operating Expenses
64100 Office Supplies
295
64101 Stationary
194
64115 Office Equipment (non-deprec)
93
64125 Computer Software (non-deprec)
400
64130 Voice and Data - Office
906
64145 Shipping Charges
411
64150 Bank Fees
687
64160 Membership Dues
77,867
64175 Governance Meeting Expenses
10
64190 Business Licensing and Fees
30
64200 • Professional Services
64201 Audit Fees
4,460
64203 Recruiting Fees
75
64205 Payroll Processing Service
2,513
Total 64200 • Professional Services
7,048
64300 • Depreciation Expense
5,002
64310 Contribution Expense
100
64500 Other Operating Expense
10,000
Total 64000 • Operating Expenses
103,044
65000 • Travel
65405 • Mileage 4
Total 65000 • Travel 4
7
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2016
67500 • Online Marketing
67501 Social Media
1,093
67502 Website Maintenance
68,398
67503 Online Search Advertising
158,497
67504 Digital Advertising
31,652
67505 Online Contests/Promotions
300
67506 Mobile Application
10,500
67508 Website Redesign Expenses
95,704
67510 Software (non-deprec)
1,430
Total 67500 • Online Marketing
367,574
67600 • Public Relations
67601 Media Services
56,492
67602 Media FAM Tours
35,432
67604 Consulting Fees
70,483
67605 Special Programs
3,140
67607 Media Relations
9,406
67608 Digital Asset/Media Library
7,015
Total 67600 • Public Relations
181,968
Total 67000 • Marketing
1,393,883
68000 • Newport Beach & Company Fees
68001 NB&Co Fees
2,214,492 A
68002 NB&Co Contributions
65,000
Total 68000 • Newport Beach & Company Fees
2,279,492
Total Expense
4,591,834
Other Expenditures:
Change in prepaid expenses and current liabilities, net 450,516
Total 2016 Expenditures 5,042,350
NOTES:
A Consists of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries & Benefits $ 1,550,018
G&A Overhead 664,474
2,214,492
N.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
For The Years Ended June 30, 2018 and 2017
with
INDEPENDENT AUDITORS' REPORT THEREON
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statements of Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-16
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source...................................17
Schedule I1— Statement of Activities by Funding Source ............................................... 18
in J'
KMCompare
Y
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
Report on the Financial Statements
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-profit
organization) (the "Organization"), which comprise the statement of financial position as of June
30, 2018, and the related statements of activities and cash flows for the year then ended, and the
related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 714 380 6565 f 714 380 6566 555 Anton Blvd Suite 1000 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Visit Newport Beach Inc. as of June 30, 2018, and the changes in its net
assets and its cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter - Related Party Transactions
As discussed in Note 6 to the financial statements, Visit Newport Beach Inc. has significant
transactions with a related non-profit organization. Our opinion is not modified with respect to this
matter.
Other Matter
The financial statements of Visit Newport Beach Inc. for the year ended June 30, 2017 were
audited by another auditor who expressed an unmodified opinion with an emphasis of matter
paragraph regarding related -party transactions on those statements on October 4, 2018.
Report on the Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information contained in Schedules I and II on pages 17-18 is
presented for purposes of additional analysis and is not a required part of the financial statements.
Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or
the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole.
kM3- Ckk4." � 'Ji", LLP
KMJ Corbin & Company LLP
Costa Mesa, California
October 22, 2018
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
ASSETS
2018
2017
Current assets:
Cash and cash equivalents
$ 743,352 $
2,245,493
Short-term investments
1,789,515
-
Accounts receivable
58,115
5,831
Related -party receivables
75,927
626,107
Prepaid expenses and other current assets
331,097
270,822
Total current assets
2,998,006
3,148,253
Long-term investments
98,188
-
Property and equipment, net
32,761
48,283
Website development costs, net
103,966
6,209
Deposits and other assets
9,619
39,619
$ 3,242,540 $ 3,242.364
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 188,655 $ 208,629
Related -party payables 204,349 695,168
Accrued expenses 18,200 10,925
Accrued payroll and related expenses 115,269 148,302
Group booking incentive reserve 108,650 58,700
Deferred rent 15.968 5.883
Total current liabilities 651,091 1,127,607
Commitments and contingencies
Unrestricted net assets 2,591,449 2,114,757
$ 3,242,540 $ 3.242,364
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30, 2018 and 2017
For The Years Ended June 30,
2018 2017
Support and revenues:
Service fee revenues $ 8,953,551 $ 8,937,545
Interest income 4,627 3,520
Total support and revenues 8,958,178 8,941,065
Expenses:
Marketing (including $2,402,277 and $2,622,915
to Newport Beach and Company during 2018
and 2017, respectively — see Note 6) 6,373,327 6,276,276
General and administrative 633,845 600,225
Salaries and benefits 1,451,788 1,312,866
Depreciation and amortization 22,526 73,050
Total expenses 8,481,486 8,262,417
Change in unrestricted net assets 476,692 678,648
Net assets, beginning of year 2,114,757 1,436,109
Net assets, end of year $ 2,591,449 $ 2.114.757
See accompanying notes to financial statements
4
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30, 2018 and 2017
For The Years Ended June 30,
2018
2017
Cash flows from operating activities:
Change in unrestricted net assets $
476,692
$ 678,648
Adjustments to reconcile change in unrestricted
net assets to net cash provided by operating activities:
Depreciation and amortization
22,526
73,050
Changes in operating assets and liabilities:
Accounts receivable
(52,284)
3,455
Related -party receivables
550,180
(275,223)
Prepaid expenses and other current assets
(60,275)
3,934
Deposits and other assets
30,000
30,000
Accounts payable
(19,974)
7,496
Related -party payables
(490,819)
482,374
Accrued expenses
7,275
(24,881)
Accrued payroll and related expenses
(33,033)
155
Group booking incentive reserve
49,950
136
Deferred rent
10,085
(245)
Deferred revenue
-
(32,378)
Net cash provided by operating activities
490,323
946,521
Cash flows from investing activities:
Sale of investment - 101
Purchase of investments (1,887,703) -
Website development costs (101,249) -
Purchases of property and equipment (3,512) (1,723)
Net cash used in investing activities (1,992,464) (1,622)
Net change in cash and cash equivalents (1,502,141) 944,899
Cash and cash equivalents at beginning of year 2,245,493 1,300,594
Cash and cash equivalents at end of year $ 743,352 $ 2,245,493
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 1— ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the laws
of the State of California.
Transient Occupancy Tax("TOT")
The Organization currently has an agreement ("TOT Agreement") with the City of Newport Beach
(the "City") through December 31, 2024 to promote tourism and serve the needs of visitors to the
City. Under the terms of the TOT Agreement, the Organization is responsible to develop, plan,
carry out and supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to the City as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized as revenue when received.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease the
percentage of TOT paid to the Organization) as part of its once -annual budget adoption process
for any reason after notice to the Organization and an opportunity for the Organization to formally
comment on the adjustment. For the years ended June 30, 2018 and 2017, the Organization
received approximately 55% and 54%, respectively, of its service fee revenues from the City
through the TOT. The City has the right to terminate the TOT Agreement, without cause, by giving
the Organization 365 days' written notice of its intention to terminate. Should the City reduce or
stop its funding to the Organization due to the Organization's default or termination of the
Agreement, the Organization's operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, for a five-year term with the expiration date of April 28, 2014 and amended on February
1, 2014 through December 31, 2024, pursuant to the Management District Plan (the "Plan"). The
NBTBID is funded by assessments levied on participating lodging businesses within a specified
district. The assessments are restricted for use for sales promotion and marketing programs to
market the City as a tourist, meeting and event destination as outlined in the Plan. Either party
may terminate this agreement by providing the other party ninety calendar days' written notice
prior to the effective date of termination. As the Organization is not entitled to its share of the
to
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 1— ORGANIZATION, continued
assessments collected until paid by the City, amounts are recognized as revenue when received.
For the years ended June 30, 2018 and 2017, the Organization received approximately 44% and
46%, respectively, of its service fee revenues from the City through TBID assessments.
As of June 30, 2018 and 2017, the NBTBID is represented by eight (8) hotels within the city of
Newport Beach which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the
receipts annually for the collection of the assessments and disbursements of the NBTBID.
During April 2018, the Organization entered into an agreement with an additional hotel to collect
a 3.0% tax on short-term stays with an expiration date of June 30, 2018. The assessments are
restricted for use similar to the NBTBID as described above. The Organization is entitled to its
share of this assessment when incurred.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. As of and for the years ended June 30, 2018 and 2017, the
Organization had no temporarily or permanently restricted net assets.
Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited
by donor -imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains
and losses on investments and other assets are reported as increases or decreases in unrestricted net
assets unless their use is restricted by explicit donor stipulations or by law. The Organization
incurred expenses related to program activities of approximately $7,462,000 and $3,897,000 for the
years ended June 30, 2018 and 2017, respectively.
Reclassifications
Certain amounts reported in the prior period have been reclassified to conform to the current
period's presentation. There was no effect on total net assets or change in net assets as previously
reported.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
VA
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the collectability of receivables, the recoverability of
long-lived assets, fair value of investments and the allocation of expenses to program activities as
disclosed above. Actual results may differ from those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash and cash
equivalent balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. At June 30, 2018,
the Organization had approximately $360,000 of uninsured cash and cash equivalent balances. To
date, no losses have been incurred. The Organization periodically reviews the quality of the
financial institutions it has deposits with to minimize risk of loss.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. Receivables are written off when deemed uncollectible. At June 30, 2018,
the Organization considers receivables to be fully collectible and accordingly did not record an
allowance for doubtful accounts.
As of June 30, 2018, one customer accounted for approximately 100% of the Organization's total
accounts receivable balance.
Investments and Fair Value Measurements
Investments and cash equivalents consist of U.S. Treasury Bills which are carried at amortized
cost, which approximates fair value.
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal market,
the most advantageous market for the asset or liability, in an orderly transaction between market
participants on the measurement date. Accounting guidance establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
inputs when measuring fair value. The standard describes three levels of inputs in priority that
may be used to measure fair value:
Level 1Quoted prices in active markets for identical assets or liabilities;
Level 2-Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
The fair value of the Organization's U.S. Treasury Bills (recorded in cash equivalents and
investments) are based partially upon quoted prices in markets that are not active or inputs which
are observable, either directly or indirectly, for substantially the full term of the assets. These
instruments have been classified within Level 2 of the valuation hierarchy.
At June 30, 2018, the Organization had approximately $1,887,703 of uninsured investment
balances. The Organization periodically reviews the quality of the financial institution holding the
investments to minimize risk of loss.
As of June 30, 2018, the Organization's investments measured at fair value on a recurring basis
were as follows:
Cash equivalents:
U.S. Treasury Bills
Short-term investments:
U.S. Treasury Bills
Long-term investments:
U.S. Treasury Bills
June 30, 2018
Quoted Prices in
Significant
Significant
Active Markets
Other
Unobservable
for Identical
Observable
Inputs
Assets (Level 1)
Inputs (Level 2)
(Level 3)
$ - $ 99,773
1,789,515
•
0
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized. It is the Organization's policy to capitalize
property and equipment over $1,500. At the time of retirement or other disposition of property
and equipment, the cost and accumulated depreciation or amortization are removed from the
accounts and any resulting gain or loss is reflected in the statements of activities.
Website Development Costs
The Organization accounts for the costs of developing its mobile apps and websites by capitalizing
the costs during the application development stage when it is probable that the project will be
completed and the property will be used to perform the function intended. Website development
costs are amortized on a straight-line basis over their estimated useful lives when completed, which
approximate three years. The recoverability of intangible assets is evaluated periodically, taking
into account events or circumstances that warrant revised estimates of useful lives or that indicate
that impairment exists.
For the year ended June 30, 2018, the Organization capitalized website development costs of
$101,249.
For the years ended June 30, 2018 and 2017, the Organization recorded amortization expense on
website development costs totaling $3,492 and $30,927, respectively.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2018 and 2017, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Group Booking Incentive
The Organization has established an incentive program for businesses by paying for certain costs
of conferences and group meetings held in Newport Beach hotels in order to attract businesses and
groups to the City. Costs are considered incurred upon the reservation of the hotel for future
meetings. As of June 30, 2018 and 2017, group booking accruals were $108,650 and $58,700,
respectively.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
statements at their estimated fair market values at date of receipt. Contributions of services are
recognized if the services received create or enhance nonfinancial assets or require specialized
skills, are provided by individuals possessing those skills and would typically need to be purchased
if not provided by donation. Other volunteer services that do not meet these criteria are not
recognized in the financial statements as there is no objective basis of deriving their value.
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other local
businesses involved in the tourism industry in Newport Beach. All businesses visited are also
sponsors of the Organization. Many of the Organization's sponsors contribute materials, such as
meals and rooms, in connection with this program. During the years ended June 30, 2018 and
2017, the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
contributions as they do not meet the required criteria.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2018 and 2017,
the Organization had no unrelated business income.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2018 and 2017, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. federal, state or local income tax examinations by
tax authorities for years before 2014.
Recent Accounting Pronouncements
In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard
Update ("ASU") No. 2016-14, Not -for -Profit Entities (Topic 958): Presentation of Financial
Statements of Not -for -Profit Entities. This update simplifies and improves how a not -for -profit
organization classifies its net assets, as well as the information it presents in financial statements
and notes about its liquidity, financial performance, and cash flows. The new standard will be
effective for the Organization for its fiscal year ending June 30, 2019 and early application is
permitted. Management is currently evaluating the impact of the adoption of this standard on the
Organization's financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases. This update changes the accounting
for leases, requiring lessees to recognize the assets and liabilities that arise from all leases on their
balance sheets. The new lease standard requires a modified retrospective transition approach for
all leases existing at, or entered into after, the date of initial application, with an option to use
certain transition relief. The new standard will be effective for reporting periods beginning after
December 15, 2019, with early application permitted. Management is currently evaluating the
impact of the adoption of this standard on the Organization's financial statements.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic
606), which supersedes existing revenue recognition requirements and most industry specific
guidance. This ASU is a comprehensive new revenue recognition model that requires an entity to
recognize revenue to depict the transfer of goods or services to a customer at an amount that
reflects the consideration it expects to receive in exchange for those goods or services. This new
guidance is effective for annual reporting periods beginning after December 15, 2018 and entities
may use either a full retrospective or a modified retrospective approach to adopt this new guidance.
Management is currently evaluating which transition approach to use and the impact of this new
guidance on the Organization's financial statements.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In June 2018, the Financial Accounting Standards Board issued ASU No. 2018-08, Not -for -Profit
Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions
Received and Contributions Made. This standard provides a more robust framework for
determining whether a transaction should be accounted for as a contribution or as an exchange as
well as provides additional guidance to assist in determining whether a contribution is conditional
and to better distinguish a donor -imposed condition from a donor -imposed restriction. The new
standard will be effective for the Organization for its fiscal year ending June 30, 2020 and early
application is permitted. Management is currently evaluating the impact of the adoption of this
standard on its financial statements.
Subsequent Events
The Organization has evaluated subsequent events through October 22, 2018, the date which the
financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto.
NOTE 3 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2018 2017
Leasehold improvements $ 38,468 $ 38,468
Computer equipment 24,481 20,968
Office furniture and fixtures 110,110 110,110
173,059 169,546
Less accumulated depreciation and amortization (140,298) (121,263)
$ 32,761 $ 48.283
For the years ended June 30, 2018 and 2017, the Organization recorded depreciation expense on
property and equipment totaling $19,034 and $42,123, respectively.
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 4 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in November 2023, and rent is payable between $8,359 and $10,423 per
month. As a result of the fourth amendment to this lease, the Organization assigned its rights to
Newport Beach & Company ("NB & Co."), a related party. Under the terms of this lease, this
assignment does not relieve the Organization of its lease obligations. As a result, the Organization
continues to be liable for future rent payments. The facility lease contains a five-year extension
option at the end of the lease term.
Total rent expense incurred by the Organization under operating leases was approximately
$114,000 and $97,000 for the years ended June 30, 2018 and 2017, respectively, and is included
in general and administrative expenses. Such amounts are net of the amounts paid by the related
party pursuant to the Agreement disclosed in Note 6.
Future minimum payments due on its non -cancelable facility lease commitment in excess of one
year are as follows:
Years Ending
June 30,
2019
2020
2021
2022
2023
Commitments
103,000
108,000
113,000
118,000
123,000
$ 565,000
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $287 to $5,000 per month over various
terms with one year or less remaining at June 30, 2018. From these commitments, the Organization
incurred approximately $195,000 of expenses for the year ended June 30, 2018, which are recorded
in marketing expenses in the accompanying statement of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on June 1,
2014 through December 31, 2024, to the City to be spent on programs or activities that benefit the
public, which is recorded in marketing expenses for the years ended June 30, 2018 and 2017.
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 4 — COMMITMENTS AND CONTINGENCIES, continued
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. Pursuant to the TOT Agreement, the Organization also indemnifies
the City and all of its related boards, councils, officers, employees, and volunteers from claims
related to the conduct of the Organization or any of its officers, employees, or associated
individuals. In connection with its facility lease, the Organization has indemnified its lessor for
certain claims arising from the use of the facilities. The duration of the guarantees and indemnities
varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not
provide for any limitation of the maximum potential future payments the Organization could be
obligated to make. Historically, the Organization has not been obligated nor incurred any
payments for these obligations and, therefore, no liabilities have been recorded for these
indemnities and guarantees in the accompanying statements of financial position.
NOTE 5 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provides
for matching contributions based upon employees' voluntary contributions and the Organization's
contributions. The total expense recorded by the Organization during the years ended June 30,
2018 and 2017 was approximately $68,000 and $63,000, respectively, and is included in general
and administrative expenses.
NOTE 6 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2018 and 2017, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, NB & Co., specializes in marketing
and promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB & Co.
as an exclusive provider of services that the Organization shall need to carry out its mission and
obligations to the City. In consideration for these services, the Organization agreed to pay NB &
Co. a monthly fee of $1,000 through the beginning of January 2015, at which time the monthly fee
was increased. The Organization has also agreed to reimburse NB & Co. for all reasonable
expenses incurred by it in carrying out its duties to the Organization, including rent, payroll and
related benefits, and other direct marketing costs. For the years ended June 30, 2018 and 2017, the
Organization incurred $2,402,277 and $2,622,915, respectively, from NB & Co. for these costs,
which are recorded in marketing expenses in the accompanying statements of activities. NB &
Co.'s costs for the years ended June 30, 2018 and 2017 were broken out as follows: $580,672 and
$161,606, respectively, of direct marketing, $1,346,544 and $1,520,254, respectively, of salaries
15
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 6 — RELATED -PARTY TRANSACTIONS, continued
and benefits, and $475,061 and $941,055, respectively, of general and administrative. The
Agreement expired in March 2016 and contained the option for one three-year renewal. The
Organization renewed the Agreement with a five-year renewal period expiring in March 2021. The
renewed agreement also removed the clause for the monthly payment of $1,000 to NB & Co. from
the Organization.
In addition, during the year ended June 30, 2018, the Organization agreed to contribute $5,000 to
the Newport Beach Foundation, which is recorded in marketing expenses in the accompanying
statement of activities.
As of June 30, 2018 and 2017, the Organization has related party -receivables of $75,927 and
$626,107, respectively, and payables of $204,349 and $695,168, respectively, in the
accompanying statements of financial position. These amounts do not bear interest, are not
collateralized, and have no stated repayment terms.
16
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2018
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable
Related -party receivables
Prepaid expenses and other
current assets
Total current assets
Long-term investments
Property and equipment, net
Website development costs, net
Deposits and other assets
Intercompany
Current liabilities:
Accounts payable
Related -party payables
Accrued expenses
Accrued payroll and related
expenses
Group booking incentive reserve
Deferred rent
Total current liabilities
Unrestricted net assets
TOT* TBID
$ 274,327
$ 469,025
1,492,454
297,061
-
58,115
75,927
-
147,067
184,030
1,989,775
1,008,231
-
98,188
335
32,426
103,966
-
9,619
-
447
(447)
$ 2. 004.142
$ 1.138.398
$ 101,128
$ 87,527
166,524
37,825
10,900
7,300
3,082 112,187
- 108,650
15.968
281,634 369,457
1.822.508 768.941
$ 2.104.142 $ 1.138.398
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 743,352
- 1,789,515
- 58,115
- 75,927
331.097
2,998,006
- 98,188
- 32,761
- 103,966
- 9,619
$ - $ 3,242,540
$ - $ 188,655
- 204,349
- 18,200
- 115,269
108,650
15.968
651,091
2.591.449
17
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2018
Support and revenues:
Service fee revenues
Interest income
Total support and revenues
Expenses:
Marketing
General and administrative
Salaries and benefits
Depreciation and amortization
Total expenses
Change in unrestricted net assets
Net assets, beginning of year
Net assets, end of year
TOT* TBID
$ 4,915,865
$ 4,037,686
3,215
1,412
4,919,080
4,039,098
4,411,545
1,961,782
262,609
371,236
54,877
1,396,911
4,619
17,907
4,733,650
3,747,836
185,430
291,262
1,637,078
477,679
$ 1.822.508
$ 768.941
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 8,953,551
- 4,627
8,958,178
- 6,373,327
- 633,845
- 1,451,788
- 22,526
- 8,481,486
- 476,692
2,114,757
18
KMJCorbin &
Company
Business Advisors Tax and Audit
October 22, 2018
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Newport Beach & Company (the
"Organization") as of and for the year ended June 30, 2018, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly,
we do not express an opinion on the effectiveness of the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and corrected
on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either
reasonably possible or probable as defined as follows:
• Reasonably possible. The chance of the future event or events occurring is more than remote but
less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. Given these
limitations, during out audit we did not identify any deficiencies in internal controls that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
This communication is intended solely for the information and use of management, the Board of Directors,
and others within the Organization and is not intended to be and should not be used by anyone other than
these specified parties.
Very truly yours,
V M:� Cn ;M, � Im" LLP
KMJ Corbin & Company LLP
p 714 380 6565 f 714 380 6566 555 Anton Blvd., Ste 1000 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
with
INDEPENDENT AUDITORS' REPORT THEREON
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statementsof Cash Flows.................................................................................................. 5
Notes to Financial Statements......................................................................................6-13
in J'
KMCompare
Y
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Newport Beach & Company
We have audited the accompanying financial statements of Newport Beach and Company (a non-
profit organization) (the "Organization"), which comprise the statement of financial position as of
June 30, 2018, and the related statements of activities and cash flows for the year then ended, and
the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 714 380 6565 f 714 380 6566 555 Anton Blvd Suite 1000 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Emphasis of Matter - Related Party Transactions
As discussed in Note 6 to the financial statements, Newport Beach & Company has significant
transactions with a related non-profit organization and the Organization derives substantial support
and revenue from that related non-profit organization. Our opinion is not modified with respect to
this matter.
Other Matter
The financial statements of Newport Beach & Company for the year ended June 30, 2017 were
audited by another auditor who expressed an unmodified opinion with an emphasis of matter
paragraph regarding related -party transactions on those statements on October 4, 2018
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Newport Beach & Company as of June 30, 2018, and the changes in its
net assets and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
KMJ Corbin & Company LLP
Costa Mesa, California
October 22, 2018
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
ASSETS 2018 2017
Current assets:
Cash $ 12,748 $ 26,689
Accounts receivable, net 44,060 55,228
Related -party receivables 204,349 695,168
Prepaid expenses and other current assets 32,158 49,732
Total current assets 293,315 826,817
Property and equipment, net 93,144 113,046
$ 386,459 $ 939.863
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 81,756 $ 26,220
Related -party payables 75,927 626,107
Accrued expenses 12,600 -
Accrued payroll and related expenses 141,360 218,364
Current portion of deferred compensation 20,000 20,000
Deferred rent 115.957 90.052
Total current liabilities 447,600 980,743
Deferred compensation, net of current portion 40,000 60,000
Total liabilities 487,600 1,040,743
Commitments and contingencies
Unrestricted net assets (101,141) (100,880)
$ 386,459 $ 939,863
See accompanying notes to financial statements
3
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2018 2017
Support and revenues:
Service fees from related parry $ 2,402,277 $ 2,622,915
Community marketing income 360,231 339,465
Total support and revenues 2,762,508 2,962,380
Expenses:
Marketing 487,545 495,501
Salaries and benefits 1,558,115 1,658,585
General and administrative 674,137 797,884
Depreciation and amortization 42,972 41,012
Loss on disposal of property and equipment - 4,995
Total expenses 2,762,769 2,997,977
Decrease in unrestricted net assets (261) (35,597)
Net assets, beginning of year (100,880) (65,283)
Net assets, end of year $ (101,141) $ (100,880)
See accompanying notes to financial statements
4
Cash flows from operating activities:
Decrease in unrestricted net assets
Adjustments to reconcile increase (decrease) in
unrestricted net assets to net cash provided by (used in)
operating activities:
Depreciation and amortization
Loss on disposal of property and equipment
Changes in operating assets and liabilities:
Accounts receivable
Related -party receivables
Prepaid expenses and other current assets
Accounts payable
Related -party payables
Accrued expenses
Accrued payroll and related expenses
Deferred compensation
Deferred rent
Net cash provided by (used in) operating activities
Cash flows used in investing activities:
Purchases of property and equipment
Net change in cash
Cash at beginning of year
Cash at end of year
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2018 2017
$ (261) $ (35,597)
42,972 41,012
- 4,995
11,168
11,195
490,819
(482,374)
17,574
20,996
55,536
(28,193)
(550,180)
275,223
12,600
-
(77,004)
40,231
(20,000)
60,000
25,905
10,424
9,129
(82,088)
(23,070)
(26,748)
(13,941)
(108,836)
26,689
135,525
$ 12,748
$ 26,689
See accompanying notes to financial statements
5
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 1— ORGANIZATION
Nature of Operations
Newport Beach & Company (the "Organization") is a non-profit organization formed under the
laws of the State of California in 2013. The Organization specializes in marketing and promotion
services related to enhancing the economic development for the City of Newport Beach (the
"City"). The Organization currently has agreements with the City to manage its public access
television channel and to provide services to the Newport Beach Restaurant Association Business
Improvement District, and the Balboa Village Merchants Association. By embracing a variety of
neighborhoods, businesses and individual unique voices into a complementary story, the
Organization seeks to strengthen all of its partners, drive new revenue to the City and enhance the
City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City, provides management and
consulting services in support of NBTV. Such services include production, administrative,
and sponsorship services. This agreement expired on March 31, 2018, but services are
continuing and a new agreement is in the process of being negotiated.
Newport Beach Restaurant Association Business Improvement District ("NBRA BID")
The agreement between the Organization and the City, which expires on June 30, 2019,
provides marketing planning and programming, public and media relations, research and
measurement, membership and community events services to the City related to the NBRA
BID.
Balboa Village Merchants Association ("BVMA")
The agreement between the Organization and BVMA, which expired on June 30, 2017,
provided advertising, promotions and design, online and social media, public relations and
e-communications and other miscellaneous services to BVMA.
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. As of and for the years ended June 30, 2018 and 2017, the
Organization had no temporarily or permanently restricted net assets.
to
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited
by donor -imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains
and losses on investments and other assets are reported as increases or decreases in unrestricted net
assets unless their use is restricted by explicit donor stipulations or by law. The Organization
incurred expenses related to program activities of approximately $675,000 and $2,000 for the years
ended June 30, 2018 and 2017, respectively.
Reclassifications
Certain amounts reported in the prior period have been reclassified to conform to the current
period's presentation. There was no effect on total net assets or change in net assets as previously
reported.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the collectability of receivables, the recoverability of
long-lived assets and the allocation of expenses to program activities as disclosed above. Actual
results may differ from those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation ("FDIC") up to $250,000 per institution. At June 30, 2018, the Organization had no
uninsured balances. To date, no losses have been incurred. The Organization periodically reviews
the quality of the financial institutions it has deposits with to minimize risk of loss.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. Receivables are written off when deemed uncollectible. For the years ended
June 30, 2018 and 2017, $0 and $12,000, respectively, of receivables were deemed uncollectible
VA
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
and were written off. At June 30, 2018 and 2017, the Organization considers receivables to be fully
collectible and accordingly did not record an allowance for doubtful accounts. As of June 30, 2018
and 2017, two customers accounted for approximately 81 % and 90%, respectively, of the
Organization's total accounts receivable balance.
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized. It is the Organization's policy to capitalize
property and equipment over $1,500. At the time of retirement or other disposition of property
and equipment, the cost and accumulated depreciation or amortization are removed from the
accounts and any resulting gain or loss is reflected in the statement of activities.
Deferred Compensation
Deferred compensation represents a commitment to make annual $20,000 annuity payments
through 2021 to a member of the Organization's management. Payments due within one year have
been classified as current and those due in over one year have been classified as non -current.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2018 and 2017, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
statements at their estimated fair market values at date of receipt. Contributions of services are
recognized if the services received create or enhance nonfinancial assets or require specialized
skills, are provided by individuals possessing those skills and would typically need to be purchased
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
if not provided by donation. Other volunteer services that do not meet these criteria are not
recognized in the financial statements as there is no objective basis of deriving their value. During
the years ended June 30, 2018 and 2017, the Organization did not have significant contributed
materials and services.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2018 and 2017,
the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2018 and 2017, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to income tax examinations by tax authorities for years
before 2014.
Recent Accounting Pronouncements
In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard
Update ("ASU") No. 2016-14, Not -for -Profit Entities (Topic 958): Presentation of Financial
Statements of Not -for -Profit Entities. This update simplifies and improves how a not -for -profit
organization classifies its net assets, as well as the information it presents in financial statements
and notes about its liquidity, financial performance, and cash flows. The new standard will be
effective for the Organization for its fiscal year ending June 30, 2019 and early application is
permitted. Management is currently evaluating the impact of the adoption of this standard on the
Organization's financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases. This update changes the accounting
for leases, requiring lessees to recognize the assets and liabilities that arise from all leases on their
balance sheets. The new lease standard requires a modified retrospective transition approach for
all leases existing at, or entered into after, the date of initial application, with an option to use
certain transition relief. The new standard will be effective for reporting periods beginning after
0
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
December 15, 2019, with early application permitted. Management is currently evaluating the
impact of the adoption of this standard on the Organization's financial statements.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic
606), which supersedes existing revenue recognition requirements and most industry specific
guidance. This ASU is a comprehensive new revenue recognition model that requires an entity to
recognize revenue to depict the transfer of goods or services to a customer at an amount that
reflects the consideration it expects to receive in exchange for those goods or services. This new
guidance is effective for annual reporting periods beginning after December 15, 2018 and entities
may use either a full retrospective or a modified retrospective approach to adopt this new guidance.
Management is currently evaluating which transition approach to use and the impact of this new
guidance on the Organization's financial statements.
In June 2018, the Financial Accounting Standards Board issued ASU No. 2018-08, Not -for -Profit
Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions
Received and Contributions Made. This standard provides a more robust framework for
determining whether a transaction should be accounted for as a contribution or as an exchange as
well as provides additional guidance to assist in determining whether a contribution is conditional
and to better distinguish a donor -imposed condition from a donor -imposed restriction. The new
standard will be effective for the Organization for its fiscal year ending June 30, 2020 and early
application is permitted. Management is currently evaluating the impact of the adoption of this
standard on its financial statements.
Subsequent Events
The Organization has evaluated subsequent events through October 22, 2018, the date which the
financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto.
10
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 3 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2018 2017
Leasehold improvements $ 79,990 $ 79,990
Computer equipment 89,620 76,206
Office furniture and fixtures 69,353 67,923
238,963 224,119
Less accumulated depreciation and amortization (145,819) (111,073)
$ 93,144 $ 113.046
NOTE 4 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in November 2023 and rent is payable between $7,225 and $22,891 per
month. As a result of the fourth amendment to this lease, the Organization is a party to the lease
originally entered into by Visit Newport Beach Inc. ("VNB"), a related party. Under the terms of
this lease, each assignee shall be deemed to assume all lease obligations, and as a result, the
Organization may be liable for future rent payments. The facility lease contains a five-year
extension option at the end of the lease term.
Total rent expense incurred by the Organization under its operating lease was approximately
$405,000 and $365,000 for the years ended June 30, 2018 and 2017, respectively, and is included
in general and administrative expenses. Such amounts are net of the amounts paid by VNB
pursuant to the Agreement disclosed in Note 6.
11
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 4 — COMMITMENTS AND CONTINGENCIES, continued
Future minimum payments due on its non -cancelable facility lease commitment in excess of one
year are as follows:
Years Ending
June 30,
2019
$ 371,000
2020
388,000
2021
406,000
2022
424,000
2023
443,000
$ 2,032,000
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. In connection with its facility lease, the Organization has
indemnified its lessor for certain claims arising from the use of the facilities. The duration of the
guarantees and indemnities varies, and is generally tied to the life of the agreement. These
guarantees and indemnities do not provide for any limitation of the maximum potential future
payments the Organization could be obligated to make. Historically, the Organization has not
been obligated nor incurred any payments for these obligations and, therefore, no liabilities have
been recorded for these indemnities and guarantees in the accompanying statements of financial
position.
NOTE 5 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provides
for matching contributions based upon employees' voluntary contributions and the Organization's
contributions. The total expense recorded by the Organization during the years ended June 30,
2018 and 2017 was approximately $76,000 and $80,000, respectively, which is recorded in salaries
and benefits expenses in the accompanying statements of activities.
12
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2018 and 2017
NOTE 6 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2018 and 2017, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, VNB, initiates, sponsors, promotes
and carries out plans, policies and activities to attract conferences and visitors to the City. VNB
was the driving force behind the formation of the Organization. Pursuant to an Agreement for
Services ("Agreement") dated April 1, 2013, the Organization was appointed by VNB as an
exclusive provider of services that VNB shall need to carry out its mission and obligations to the
City. In consideration for these services, VNB agreed to pay a monthly fee of $1,000 through the
beginning of January 2015, at which time the monthly fee was increased. VNB has also agreed to
reimburse the Organization for all reasonable expenses incurred by it in carrying out its duties to
VNB, including rent, payroll and related benefits, and other direct marketing costs. For the years
ended June 30, 2018 and 2017, the Organization billed $2,402,277 and $2,622,915, respectively,
to VNB for these fees and costs, which are recorded as service fees from related party in the
accompanying statements of activities. The Agreement expired in March 2016 and contained the
option for one three-year renewal. The Organization renewed this agreement with a five-year
renewal period expiring in March 2021. The renewed agreement also removed the clause for the
monthly payment of $1,000 from VNB to the Organization.
As of June 30, 2018 and 2017, the Organization has related -party receivables of $204,349 and
$695,168 and payables of $75,927 and $626,107, respectively, in the accompanying statements of
financial position. These amounts do not bear interest, are not collateralized and have not stated
repayment terms.
13
Corbin &KMJ Company
Business Advisors Tax and Audit
October 22, 2018
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
Dear Management:
In planning and performing our audit of the financial statements of Newport Beach & Company
(the "Organization") as of and for the year ended June 30, 2018, we considered the
Organization's internal control over financial reporting as a basis for designing audit procedures
for the purpose of expressing an opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Organization's internal control. Accordingly,
we do not express an opinion on the effectiveness of the Organization's internal control.
However, during our audit we became aware of certain matters that relate to internal control
deficiencies that were of a lesser magnitude than significant deficiencies, as well as opportunities
to strengthen the Organization's operating efficiencies. A deficiency in internal control exists
when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. This letter summarizes our comments and recommendations
regarding those matters. This letter does not affect our report dated October 22, 2018, on the
financial statements of the Organization.
Observation #1
The fourth amendment to the facility lease agreement was entered into between The
Irvine Company as the landlord and the Organization as the tenant in 2015. The original
lease agreement and three subsequent amendments were entered into between the Irvine
Company and Visit Newport Beach Inc. The latest amendment is unclear as to whether
the Organization now has all of the legal obligations related to the original and amended
lease agreement, or if Visit Newport Beach Inc. still has certain legal obligations under
the original and amended lease agreement.
Recommendation
We recommend that management obtain clarification from the landlord regarding the
legal obligations under the lease, and that such clarification be in writing so that all
parties involved are aware of their legal obligations regarding the lease. This will ensure
all commitments are properly documented and could prevent future confusion or
misunderstanding.
p 714 380 6565 f 714 380 6566 555 Anton Blvd Suite 1000 Costa Mesa CA 92626 knnjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Newport Beach & Company
October 22, 2018
Page 2
Observation #2
Certain related party contributions and other similar decisions are not formally approved
through a motion of the board of directors.
Recommendation
We recommend the Organization implement a policy to approve all related parry
contributions and other similar board decisions through a formal motion and obtain
documented approval related to these transactions. This will help ensure that all related
party transactions and similar activities are recorded properly.
Observation #3
The Organization does not maintain a copy of checks issued and therefore only has
visibility to check copies once checks clear the bank and appear in the online portal.
Recommendation
We recommend that management retain a copy of all checks issued or use a two-part
check that allows them to retain support for all check amounts issued. This will help
ensure the record keeping of any outstanding checks written that have yet to clear the
bank.
Observation #4
The Organization did not maintain a detail or reconciliation as it relates to the American
Express Corporate Credit Cards account.
Recommendation
We recommend that the Organization keep a detail record of all account reconciliations.
This will help ensure accuracy of the account balance and activity recorded throughout
the course of the year.
Observation #5
The former CFO processed payroll, including the payroll of new employees, with no
independent review of the corresponding payroll data.
Recommendation
We recommend that payroll be reviewed each pay period by an independent party in
order to mitigate the risk that unauthorized employees, or pay rates, are processed and
paid by the Organization.
Newport Beach & Company
October 22, 2018
Page 3
Observation #6
The Organization does not have a formal policy in place to review and approve journal
entries posted into the accounting system.
Recommendation
We recommend that the Organization implement a policy that would allow for the proper
review and approval of journal entries to prevent material misstatements and/or errors in
the financial statements. Such review should be documented and retained in the
Organization's records.
Observation #7
The Organization does not maintain the meeting minutes of the Audit Committee nor the
Compensation Committee.
Recommendation
We recommend that the Organization document and maintain records of all matters
discussed during these committee meetings to ensure proper documentation of all matters
discussed.
We will review the status of these comment during our next audit engagement. We will be
pleased to discuss these in further detail at your convenience, to perform any additional studies
of these matters, or to assist you in implementing the recommendations.
This letter is intended solely for the information and use of management, and others within the
Organization and is not intended to be and should not be used by anyone other than these
specified parties.
Sincerely,
"J- C04--t ,, t (M" LL-?
KMJ Corbin & Company LLP
Corbin &KMJ Company
Business Advisors Tax and Audit
October 22, 2018
To the Board of Directors of
Newport Beach & Company
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Newport Beach & Company (the "Organization") as
of and for the year ended June 30, 2018, and have issued our report thereon dated October XX,
2018. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated April 25, 2018, our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered
the internal control of the Organization solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated August 7, 2018. The original plan was to issue our report
on or about September 30, 2018; however, timing as it relates to the issuance of the final report
for the year ended June 30, 2017 led to delays in completing the audit.
p 714 380 6565 f 714 380 6566 555 Anton Blvd., Ste 1000 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
October 22, 2018
Page 2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization, is included in Note 2 to the
financial statements. There have been no initial selection of accounting policies and no changes
in significant accounting policies or their application during 2018. No matters have come to our
attention that would require us, under professional standards, to inform you about (1) the
methods used to account for significant unusual transactions and (2) the effect of significant
accounting policies in controversial or emerging areas for which there is a lack of authoritative
guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's current judgments. Those judgments are normally based on
knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
markedly from management's current judgments. Significant estimates made by the
Organization's management include, but are not limited to, the collectability of accounts
receivable, the recoverability of long-lived assets and the allocation of expenses to program
expenses.
• Management's estimate of the collectibility of accounts receivables is based on assessing
the potential uncollectible receivables outstanding as of June 30, 2018 using the specific
identification method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
• Management's estimate of allocation of expenses to program services is based on
assessing the purpose of the expenditures incurred during the year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
October 22, 2018
Page 3
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures
affecting the Organizations financial statements relate to related party transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. The attached Exhibit A summarizes uncorrected financial statement
misstatements whose effects in the current and prior periods, as determined by management, are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. There were no corrected misstatements during the year ended June 30, 2018.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
attached letter dated October 22, 2018.
October 22, 2018
Page 4
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss
a variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as the Organization's auditors.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
v-MT &L- v,, t cov�" Lp
KMJ Corbin & Company LLP
Exhibit A
Summary of Uncorrected Misstatements
For the year ended June 30, 2018
Financial Statement Effects
Increase Increase Increase Increase
(Decrease) (Decrease) (Decrease) (Decrease)
Total Total Net Change In
Description of Uncorrected Misstatements Debit Credit Assets Liabilities Assets Net Assets
PJE # 1
Accrued expenses $ 12,600
General and administrative expenses $ 12,600 $ - $ (12,600) $ 12,600 $ 12,600
To true up the accrued expense account for
audit fees that relate to FY2019, but recorded
during FY2018.
$ 12,600 $ 12,600 $ - $ (12,600) $ 12,600 $ 12,600
Effect of Prior -Period Uncorrected Misstatements
Rollover Effect of Uncorrected Misstatements
FS $
FS %
- - - 1,906
- (12,600) 12,600 14,506
386,459 487,600 (101,141) 1,739
0% -3% -12% 834%
Corbin g�KMJ Company
Business Advisors Tax and Audit
October 22, 2018
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Visit Newport Beach Inc. (the "Organization") as of
and for the year ended June 30, 2018, and have issued our report thereon dated October 22, 2018.
Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated April 25, 2018, our responsibility, as described
by professional standards, is to form and express an opinion about whether the financial
statements that have been prepared by management with your oversight are presented fairly, in
all material respects, in conformity with accounting principles generally accepted in the United
States of America. Our audit of the financial statements does not relieve you or management of
its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered
the internal control of the Organization solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
We have provided our comments regarding a material weakness noted during our audit in a
separate letter to you dated October 22, 2018.
p 714 380 6565 f 714 380 6566 555 Anton Blvd., Ste 1000 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach Inc.
October 22, 2018
Page 2
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated August 7, 2018. The original plan was to issue our report
on or about September 30, 2018; however, timing as it relates to the issuance of the final report
for the year ended June 30, 2017 led to delays in completing the audit.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. There have been no initial selection of accounting policies and no changes
in significant accounting policies or their application during 2018. No matters have come to our
attention that would require us, under professional standards, to inform you about (1) the
methods used to account for significant unusual transactions and (2) the effect of significant
accounting policies in controversial or emerging areas for which there is a lack of authoritative
guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's current judgments. Those judgments are normally based on
knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
markedly from management's current judgments. Significant estimates made by the
Organization's management include, but are not limited to, the collectability of accounts
receivable, the recoverability of long-lived assets, fair value of investments and the allocation of
expenses to program expenses.
• Management's estimate of the collectibility of accounts receivables is based on assessing
the potential uncollectible receivables outstanding as of June 30, 2018 using the specific
identification method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
Visit Newport Beach Inc.
October 22, 2018
Page 3
• Management's estimate of the fair value of investments is based on the exchange price
that would be received for an asset or paid to transfer a liability (an exit price) in the
principal, or in the absence of a principal market, the most advantageous market for the
asset or liability, in an orderly transaction between market participants on the
measurement date.
• Management's estimate of allocation of expenses to program services is based on
assessing the purpose of the expenditures incurred during the year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures
affecting the Organization's financial statements relate to related -party transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. The attached Exhibit A summarizes uncorrected financial statement
misstatements whose effects in the current and prior periods, as determined by management, are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. The attached Exhibit B summarizes material misstatements that we identified as a
result of our audit procedures were brought to the attention of, and corrected by, management.
Visit Newport Beach Inc.
October 22, 2018
Page 4
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in a
separate letter dated October 22, 2018.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss
a variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as the Organization's auditors.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
V-M - Cwr-v,,,, � *ft%� L-P
KMJ Corbin & Company LLP
Exhibit A
Summary of Uncorrected Misstatements
For the year ended June 30, 2018
Financial Statement Effects
Increase Increase Increase Increase
(Decrease) (Decrease) (Decrease) (Decrease)
Total Total Net Change In
Description of Uncorrected Misstatements Debit Credit Assets Liabilities Assets Net Assets
HE # 1
Accrued expenses $ 18,200
General and administrative expenses $ 18,200 $ - $ (18,200) $ 18,200 $ 18,200
To true up the accrued expense account for
audit fees that relate to FY2019, but recorded
during FY2018.
PJE # 2
Unrestricted net assets $ 19,527
M arketing exp enses $ 19,527 $ - $ - $ - $ 19,527
To record expenses in the proper period.
$ 37,727 $ 37,727 $ - $ (18,200) $ 18,200 $ 37,727
Effect of Prior -Period Uncorrected Misstatements
Rollover Effect of Uncorrected Misstatements
FS $
FS %
- - (2,664)
- (18,200) 18,200 35,063
3,242,540 651,091 2,591,449 476,692
0% -3% 1% 7%
Exhibit B
Summary of Corrected Misstatements
For the year ended June 30, 2018
Financial Statement Effects
Increase Increase Increase Increase
(Decrease) (Decrease) (Decrease) (Decrease)
Total Total Net Change In
Description of Corrected Misstatements Debit Credit Assets Ilabilities Assets Net Assets
AJE # 1
Website development costs, net $ 101,250
General and administrative expenses 101,250 $ 101,250 - $ 101,250 $ 101,250
To capitalize website redesign expenses
recorded as ofyear end.
$ 101,250 $ 101,250 $ 101,250 $ - $ 101,250 $ 101,250
KMT Corbin &
J Company
Business Advisors Tax and Audit
October 22, 2018
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Visit Newport Beach Inc. (the
"Organization") as of and for the year ended June 30, 2018, in accordance with auditing
standards generally accepted in the United States of America, we considered the Organization's
internal control over financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Organization's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A reasonable possibility exists
when the likelihood of an event occurring is either reasonably possible or probable as defined as
follows:
• Reasonably possible. The chance of the future event or events occurring is more than
remote but less than likely.
• Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph
and was not designed to identify all deficiencies in internal control that might be material
weaknesses. However, as discussed below, we identified a deficiency in internal control that we
consider to be a material weaknesses.
Capitalization of Website Development Costs
The Organization did not properly capitalize website development costs.
p 714 380 6565 f 714 380 6566 555 Anton Blvd., Ste 1000 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach, Inc.
June 30, 2018
Page 2
Recommendation
We recommend that the Organization implement a policy to review expenses as it relates
to website development costs in order to determine whether certain costs meet the
capitalization criteria.
Management's response
Management has implemented the following capitalization policy: The current minimum
capitalization policy for fixed assets is $1,500 with all software being expensed. Because
of the significant dollar amounts required for the website development, the expenses will
be capitalized and amortized over the useful life of the product. Improvements and
updates are continuing to be done on the mobile app website with additional phases
planned for each new fiscal year ending with the year ended June 30, 2021. Due to
continued developments in technology, it was determined that the website will have
reached its useful life during the year ended June 30, 2021. Therefore, the organization
has determined to amortize any additional costs for this website development over the
remaining term ending with the year ended June 30, 2021.
This communication is intended solely for the information and use of management, the Board of
Directors, and others within the Organization and is not intended to be and should not be used by
anyone other than these specified parties.
Very truly yours,
ICM j- Wr-vw � IUYA�l LL?
KMJ Corbin & Company LLP
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2018
with
INDEPENDENT AUDITORS' REPORT THEREON
Corbin g�KMJ Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc. (the "Organization") complied with the provisions in
Section 4 of the Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services (the "Agreement") regarding the
attached 2018 Expenditures Report, summarizing the expenditures of funds received pursuant to
the Agreement during the period July 1, 2017 to June 30, 2018. The Organization's management
is responsible for its assertion. Our responsibility is to express an opinion on management's
assertion about the Organization's compliance with the specified requirements based on our
examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion
about compliance with the specified requirements is fairly stated, in all material respects. An
examination involves performing procedures to obtain evidence about whether management's
assertion is fairly stated, in all material respects. The nature, timing, and extent of the procedures
selected depend on our judgment, including an assessment of the risks of material misstatement
of management's assertion, whether due to fraud or error. We believe that the evidence we
obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Organization's compliance with
the specified requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the attached 2018 Expenditures Report for
the year ended June 30, 2018 is fairly stated, in all material respects.
V-MJ- � 11"n LA-�
KMJ Corbin & Company LLP
Costa Mesa, California
October 22, 2018
p 714 380 6565 f 714 380 6566 555 Anton Blvd Suite 1000 Costa Mesa CA 92626 knnjpartnerscpa.conn
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
VISIT ewport
1 A%HiNTc.
Management Statement Regarding Compliance With Certain Provisions of the
Agreement Between the City of Newport Beach and Visit Newport Beach Inc. for
Tourism Promotion, Branding, and Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are
responsible for complying with the provisions of Section 4 of the Agreement Between the
City of Newport Beach and Visit Newport Beach Inc. (collectively, the "Parties") for
Tourism Promotion, Branding, and Marketing Services (the "Agreement") in that funds
received by the Organization pursuant to this Agreement were expended in accordance
with this Agreement. We are responsible for establishing and maintaining effective
internal controls over compliance with the provisions of Section 4 of the Agreement. We
have performed an evaluation of the Organization's compliance with the provisions of
Section 4 of the Agreement regarding funds expended during the year ended June 30, 2018,
as summarized in the attached 2018 Expenditures Report. Based on this evaluation, we
assert that the Organization was in compliance with the provisions of Section 4 of the
Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and
supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to Newport Beach as well as increase the amount
of TOT collected through their promotional activities (`Services'). Subject to the foregoing
sentence, the Services shall, at a minimum, include the following: (a) the maintenance of
suitable office space and the employment of competent personnel to carry out the
promotional, branding and marketing duties; (b) the preparation of brochures, publications,
guides, on-line promotions, social network efforts, and other marketing materials and
information that inform prospective tourists and visitors of the recreational activities,
cultural assets, shopping and dining opportunities, night-time stay opportunities, and
natural beauty of Newport Beach; (c) the dissemination of information described in this
section by way of the media, direct mail, handouts, social networking, websites; smart
phone applications, or other means of distribution; and (d) the development and
implementation of specific marketing programs designed to increase awareness of the
Newport Beach brand and to increase business and visitor trade in Newport Beach; and (e)
any additional Services when proposed by the City which are consistent with the promotion
of tourism and the Newport Beach brand which are mutually agreeable and acceptable to
the Parties."
Vice President of Finance
VISIT NEWPORT BEACH INC.
2018 Expenditures Report
July 1, 2017-
June 30, 2018
2018 Expenses
Salary and Wages
61010 - Salaries and Wages
$ 47,356
61030 - Payroll Tax Expenses
5,464
Total Salary and Wages
52,820
Benefits
61140 - Retirement Plan (401 k)
2,057
Total Benefits
2,057
General and Administrative Expenses
Operating Expenses
Operating Expenses
64100 - Office Supplies
157
64101 - Stationary
211
64125 - Computer Software (non-deprec)
8,457
64130 - Voice and Data - Office
1,164
64140 - Postage
5
64145- Shipping Charges
478
64150 - Bank Fees
560
64160 - Membership Dues
84,506
64165 - Subscriptions
161
64170 - Team Meetings
75
64175 - Governance Meeting Expenses
10,791
64190 - Business Licensing and Fees
30
t 64310 - Contribution Expense
5,000
64600 - Business Meals/Entertainmem
311
64610 - Client Gifts
558
Total Operating Expenses
112,464
Total Operating Expenses
112,464
Insurance
63100 - General Liability Insurance
1,104
63300 - Board of Directors Insurance
6,520
Total Insurance
7,624
Professional Fees
64205 - Payroll Processing Service
2,397
64207 - Bloggers
5,250
64201 - Audit Fees
15,600
64202 - Tax Preparation Fees
2,550
Total Professional Fees
25,797
Travel Expenses
65200 - Accommodations
1,672
65300 - Meals
68
65400 - Transportation Costs
30
65405 - Mileage ($0.535/nide 2017)
16
Total Travel Expenses
1,786
Total General and Administrative
147,671
Advertising Expenses
66101 - Advertising - Purchased
747,360
66102 - Advertising - Local Events
57,824
66103 - Advertising Promotions - Media
466
66202 - Ad Production
88,816
66203 - Creative Design/Development
101,801
66205 - PhotographyNideo Production
9,730
Total Advertising Expenses
1,005,997
Marketing Expenses
Community Relations
67103 - Community Partner Events
14,621
k 66212 - Community Sponsorships
10,000
67101 - Research
100,910
67102 - Christmas Boat Parade
161,153
67105 - Awards
895
67107 - Promotional Items
6,067
67108 - Company -Sponsored Events
(60)
67109 - Hospitality Training
962
Total Community Relations
294,548
Marketing Collateral
67312 - Collateral Distribution
29,552
Total Marketing Collateral
29,552
Digital Marketing
67501 - Social Media
30
67502 - Website Maintenance
107,546
67503 - Online Search Advertising
115,069
67504 - Digital Advertising
13,989
67505 - Online Contests/Promotions
676
67506 - Mobile Application
12,600
67508 - Website Redesign Expenses
22,975
67511 - Digital Lifestyle Channel Production
20,359
Pagc 1 of
NOTES:
A
VISIT NEWPORT BEACH INC.
2018 Expenditures Report
July 1, 2017-
June 30, 2018
Total Digital Marketing
293,244
Communications/Public Relations
67601 - Media Services
20,916
67602 - Media FAM Tours
44,078
67605 - Media Special Programs
57,051
67607 - Media Relations
9,795
67608 - Digital Assets/Media Library
9,588
Total Communications/Public Relations
141,428
Total Marketing Expenses
758,772
Intemational Marketing Initiatives
67401 - Intemational Brand Awareness Fees
102,983
67402 - Intemational TTI FAM Tours
16,023
67403 - Intemational Promotions
210,222
67404 - Intemational Trade Shows
38,692
67405 - Intemational Airfare
6,146
67406 - Intemational Accommodations
7,258
67407 - Intemational Meals
842
67408 - Intemational Transportation Costs
2,251
67409 - Intemational Other Travel Costs
733
67410 - Intemational Business Meals/Entertainment
453
67411 - Intemational Promotional Items
2,359
67413 - Intemational Sales Missions
19,472
Total International Marketing Initiatives
407,434
NB&Company Fees
68001 - NB&Co Fees
2,324,277
Total NB&Company Fees
2,324,277
Total 2018 Expenses
4,699,028
Other Expenditures:
Fixed asset additions capitalized
3,513
Website development costs capitalized
101,249
Change in other prepaid expenses and current liabilities, net
237,443
342,205
Total 2018 Expenditures
$ 5,041,233
Included in this account are expenditures for or contributions to special events and not -for -profit organizations in Newport Beach as follows:
Vendor Event Amount
Newport Beach Marriot Hotel Fire and Lifeguard Dinner Sponsorship $ 5,000
California Travel Association PAC Donation 5,000
$ 10,000
Consists of $5,000 to the Newport Beach Foundation.
Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense
Amount
Salaries/Benefits
$ 1,346,544
Marketing Expenses
502,672
G&A Overhead
475,061
$ 2,324,277
Pagc 2 of 2
Corbin &KMJ Company
Business Advisors Tax and Audit
October 22, 2018
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
Dear Management:
In planning and performing our audit of the financial statements of Visit Newport Beach Inc. (the
"Organization") as of and for the year ended June 30, 2018, we considered the Organization's
internal control over financial reporting as a basis for designing audit procedures for the purpose
of expressing an opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Organization's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Organization's internal control.
However, during our audit we became aware of certain matters that relate to internal control
deficiencies that were of a lesser magnitude than significant deficiencies, as well as opportunities
to strengthen the Organization's operating efficiencies. A deficiency in internal control exists
when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. This letter summarizes our comments and recommendations
regarding those matters. This letter does not affect our report dated October 22, 2018, on the
financial statements of the Organization.
Observation #1
The fourth amendment to the facility lease agreement was entered into between The
Irvine Company as landlord and Newport Beach & Company as tenant in 2015. The
original lease agreement and three subsequent amendments were entered into between the
Irvine Company and the Organization. The latest amendment is unclear as to whether the
Organization still has legal obligations related to the original lease agreement, or if all
obligations were taken over by Newport Beach & Company.
Recommendation
We recommend that management obtain clarification from the landlord regarding the
legal obligations under the lease, and that such clarification be in writing so that all
parties involved are aware of their legal obligations regarding the lease. This will ensure
all commitments are properly documented and could prevent future confusion or
misunderstanding.
p 714 380 6565 f 714 380 6566 555 Anton Blvd Suite 1000 Costa Mesa CA 92626 knnjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach, Inc.
October 22, 2018
Page 2
Observation #2
Certain related party contributions and other similar decisions are not formally approved
through a motion of the board of directors.
Recommendation
We recommend the Organization implement a policy to approve all related party
contributions and other similar board decisions through a formal motion and obtain
documented approval related to these transactions. This will help ensure that all related
party transactions and similar activities are recorded properly.
Observation #3
The Organization does not maintain a copy of checks issued and therefore only has
visibility to check copies once checks clear the bank and appear in the online portal.
Recommendation
We recommend that management retain a copy of all checks issued or use a two-part
check that allows them to retain support for all check amounts issued. This will help
ensure the record keeping of any outstanding checks written that have yet to clear the
bank.
Observation #4
The Organization does not generate or receive any verifiable support for sponsorships.
The accounting department obtains internal reports from the sales department rather than
requesting and maintaining third party support.
Recommendation
We recommend that the Organization receive and retain verifiable support for
sponsorships. This will help ensure the accuracy of the transactions that occur throughout
the year and ensure that all activities and amounts are properly recorded.
Observation #5
The Organization did not maintain a detail reconciliation of the Group Booking Incentive
Reserve account at year end.
Visit Newport Beach, Inc.
October 22, 2018
Page 3
Recommendation
We recommend that the Organization keep a detail record of all account reconciliations.
This will help ensure accuracy of the account balance and activity recorded throughout
the course of the year.
Observation #6
The Organization's marketing department does not keep track of or bill amounts due to
the Organization as it relates to advertisements on the Organization's website for
businesses not located within the City of Newport Beach.
Recommendation
We recommend that the Organization keep a detail record of all amounts due to the
Organization. This will help the Organization track and keep record of any amounts owed.
Observation #7
The former CFO processed payroll, including the payroll of new employees, with no
independent review of the corresponding payroll data.
Recommendation
We recommend that payroll be reviewed each pay period by an independent party in
order to mitigate the risk that unauthorized employees, or pay rates, are processed and
paid by the Organization.
Observation #8
The Organization does not have a formal policy in place to review and approve journal
entries posted into the accounting system.
Recommendation
We recommend that the Organization implement a policy that would allow for the proper
review and approval of journal entries to prevent material misstatements and/or errors in
the financial statements. Such review should be documented and retained in the
Organization's records.
Observation #9
The Organization does not maintain the meeting minutes of the Audit Committee nor the
Compensation Committee.
Visit Newport Beach, Inc.
October 22, 2018
Page 4
Recommendation
We recommend that the Organization document and maintain records of all matters
discussed during these committee meetings to ensure proper documentation of all matters
discussed.
We will review the status of these comment during our next audit engagement. We will be
pleased to discuss these in further detail at your convenience, to perform any additional studies
of these matters, or to assist you in implementing the recommendations.
This letter is intended solely for the information and use of management, and others within the
Organization and is not intended to be and should not be used by anyone other than these
specified parties.
Sincerely,
KMJ Corbin & Company LLP
KMJ1Corbin &
Company
Business Advisors Tax and Audit
September 30, 2019
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
Dear Management:
In planning and performing our audit of the financial statements of Visit Newport Beach Inc. (the
"Organization") as of and for the year ended June 30, 2019, we considered the Organization's
internal control over financial reporting as a basis for designing audit procedures for the purpose
of expressing an opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Organization's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Organization's internal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have been identified. We did not
identify any deficiencies in internal control that we consider to be material weaknesses or
significant deficiencies. However, as discussed below, we identified certain matters involving the
internal control and other operational matters that are presented for your consideration. This
letter does not affect our report dated September 30, 2019 on the financial statements of the
Organization.
We will review the status of these comments during our next audit engagement. Our comments
and recommendations, all of which have been discussed with appropriate members of
management, are intended to improve the internal control or result in other operating efficiencies.
Our comments are summarized as follows:
Observation #1
Certain corrected and uncorrected misstatements were identified during the audit,
specifically related to the following:
o Correct rollforward of net assets balance
o True up of allocations between expenses and assets for certain services
o Proper allocation of related -party amounts
p 714 380 6565 f 714 380 6566 535 Anton Blvd Suite 1050 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach, Inc.
September 30, 2019
Page 2
Recommendation
We recommend the Organization continues to implement its month -end close process
related to the accounts above to ensure proper completeness of account balances and
accounting treatment for its transactions.
Management's response
We will continue to implement our detailed month -end close process to prevent
misclassifications and misstatements.
Observation #2
Certain related party contributions, allocations and agreements, the updated employee
leave time policy, modifications of contracts such as the hotel incentive contracts and
other similar decisions and modifications to current policies and agreements are not
formally approved through a written contract or a motion of the board of directors.
We recommend the Organization implement a policy to approve all related -party
transactions and allocations, modifications to existing contracts and similar business
decisions through a written contract and/or formal board of directors motion and obtain
documented approval related to these transactions. This will help ensure that related -
party transactions and other modifications of arrangements and similar activities are
authorized and recorded properly.
Management's response
All material related parry transactions are approved during the formal budget process and
approval is documented in the Board minutes. Approval for specific day-to-day activities
is not feasible. The Vice Presidents' of Sales and Marketing approve standard related
party transactions. Any material changes affecting the budget will be presented to the
Board for approval.
Observation #3
The Organization does not have a formal policy in place to review and approve journal
entries posted into the accounting system.
Recommendation
We recommend that the Organization implement a policy that would allow for the proper
review and approval of journal entries to prevent material misstatements and/or errors in
the financial statements. Such review should be documented and retained in the
Organization's records.
Visit Newport Beach, Inc.
September 30, 2019
Page 3
Management's response
Procedures have been created and a monthly closing process has been implemented
including standardized journal entries which will then be prepared and reviewed by both
the Financial Coordinator and the VP of Finance.
Observation #4
The Organization does not maintain the meeting minutes of the Compensation
Committee.
Recommendation
We recommend that the Organization document and maintain records of all matters
discussed during all board committee meetings to ensure proper documentation of all
matters discussed.
Management's response
The Organization agrees that minutes should be maintained and will maintain minutes for
all committee meetings.
We will review the status of these comments during our next audit engagement. We will be
pleased to discuss these in further detail at your convenience, to perform any additional studies
of these matters, or to assist you in implementing the recommendations.
This letter is intended solely for the information and use of management, and others within the
Organization and is not intended to be and should not be used by anyone other than these
specified parties.
Sincerely,
KMJ Corbin & Company LLP
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
September 30, 2019
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
In planning and performing our audit of the financial statements of Visit Newport Beach (the
"Organization") as of and for the year ended June 30, 2019, in accordance with auditing standards
generally accepted in the United States of America, we considered the Organization's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly,
we do not express an opinion on the effectiveness of the Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and corrected
on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either
reasonably possible or probable as defined as follows:
Reasonably possible. The chance of the future event or events occurring is more than remote but less than
likely.
Probable. The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. Given these
limitations, during out audit we did not identify any deficiencies in internal controls that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
This communication is intended solely for the information and use of management, the Board of Directors,
and others within the Organization and is not intended to be and should not be used by anyone other than
these specified parties.
Very truly yours,
V-MTt1-0" LLP
KMJ Corbin & Company LLP
p 714 380 6565 f 714 380 6566 535 Anton Blvd Suite 1050 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
KMJCorbing� Company
Business Advisors Tax and Audit
September 30, 2019
To the Board of Directors of
Visit Newport Beach Inc.
1600 Newport Center Drive
Newport Beach, California 92660
We have audited the financial statements of Visit Newport Beach Inc. (the "Organization") as of
and for the year ended June 30, 2019, and have issued our report thereon dated September 30,
2019. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated August 12, 2019, our responsibility, as
described by professional standards, is to form and express an opinion about whether the
financial statements that have been prepared by management with your oversight are presented
fairly, in all material respects, in accordance with accounting principles generally accepted in the
United States of America. Our audit of the financial statements does not relieve you or
management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes consideration of internal
control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audits, we
considered the internal control of the Organization solely for the purpose of determining our
audit procedures and not to provide any assurance concerning such internal control.
In conjunction with the annual audit, we also performed an examination of management's
assertion included in the Management Statement Regarding Compliance with Certain Provisions
of the Agreement Between the City of Newport Beach and the Organization for Tourism
Promotion, Branding, and Marketing Services, that the Organization complied with the
provisions in Section 4 of the Agreement Between the City of Newport Beach and Visit Newport
Beach, Inc. for Tourism Promotion, Branding, and Marketing Services regarding the 2019
Expenditures Report, summarizing the expenditures of funds received pursuant to the Agreement
during the year ended June 30, 2019.
p 714 380 6565 f 714 380 6566 535 Anton Blvd., Ste 1050 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Visit Newport Beach Inc.
September 30, 2019
Page 2
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However, we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in a letter dated August 30, 2019.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with all
relevant ethical requirements regarding independence.
As part of the audit, we assisted you in preparing a draft of your financial statements and related
notes, a nonattest service. With respect to any nonattest service we performed, the Company's
management has been responsible for (a) making all management decisions and performing all
management functions; (b) assigning a competent individual to oversee the services; (c)
evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility
for the results of the services performed; and (e) establishing and maintaining internal controls,
including monitoring ongoing activities.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Organization is included in Note 2 to the
financial statements. Other than the adoption of ASU 2016-14 — Not -for -Profit Entities (Topic
958): Presentation of Financial Statements of Not -for -Profit Entities, there have been no initial
selection of accounting policies and no changes in significant accounting policies or their
application during the year ended June 30, 2019. No matters have come to our attention that
would require us, under professional standards, to inform you about (1) the methods used to
account for significant unusual transactions and (2) the effect of significant accounting policies
in controversial or emerging areas for which there is a lack of authoritative guidance or
CK1311; WkWR9
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's current judgments. Those judgments are normally based on
knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
Visit Newport Beach Inc.
September 30, 2019
Page 3
markedly from management's current judgments. Significant estimates made by the
Organization's management include, but are not limited to, the collectibility of accounts
receivable, the recoverability of long-lived assets, fair value of investments and the allocation of
expenses to program activities and general and administrative.
• Management's estimate of the collectibility of accounts receivables is based on assessing
the potential uncollectible receivables outstanding using the specific identification
method.
• Management's estimate of the recoverability of long-lived assets is based on comparing
forecasts of undiscounted cash flows expected to result from the use and eventual
disposition of the long-lived asset to its carrying value.
• Management's estimate of the fair value of investments is based on the exchange price
that would be received for an asset or paid to transfer a liability (an exit price) in the
principal, or in the absence of a principal market, the most advantageous market for the
asset or liability, in an orderly transaction between market participants on the
measurement date.
• Management's estimate of allocation of expenses to program activities and general and
administrative is based on assessing the purpose and nature of the expenditures incurred
during the year.
We evaluated the key factors and assumptions used to develop the estimates and determined that
they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures
affecting the Organization's financial statements relate to related -parry transactions.
Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Visit Newport Beach Inc.
September 30, 2019
Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. The attached Exhibit A summarizes uncorrected financial statement
misstatements whose effects in the current and prior periods, as determined by management, are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. The attached Exhibit B summarizes material misstatements that we identified as a
result of our audit procedures were brought to the attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Organization's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in a
separate letter dated September 30, 2019.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the Organization, we generally discuss
a variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Organization, and operational plans and
strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as the Organization's auditors.
Visit Newport Beach Inc.
September 30, 2019
Page 5
Supplemental Information
The supplementary information contained in Schedules I and II of the financial statements is
presented for purposes of additional analysis and is not a required part of the 2019 financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the 2019 financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the 2019 financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the 2019 financial statements or the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America.
This report is intended solely for the information and use of the Board of Directors and
management of the Organization, and is not intended to be and should not be used by anyone
other than these specified parties.
Very truly yours,
"T Cam,, t CV" LLP
KMJ Corbin & Company LLP
Exhibit A
Summary of Uncorrected Misstatements
For the year ended June 30, 2019
Financial Statement Effects
Increase Increase Increase Increase
(Decrease) (Decrease) (Decrease) (Decrease)
Total Total Net Change In
Description of Uncorrected Misstatements Debit Credit Assets liabilities Assets Net Assets
PJE # 1
Website development costs, net
$ 13,466
Total expenses
$ 13,466
To correctly allocate payments between
expenses and other assets based on service
period.
PJE # 2
Marketing expenses
55,020
Accrued expenses
48,047
Related -party payables
6,973
To correctly allocate related party amounts.
PJE # 3
Net assets without donor restrictions
5,200
Total expenses
5,200
To correctly rollforward net assets.
$ 13,466 $ - $ 13,466 $ 13,466
- 55,020 (55,020) (55,020)
- - - 5,200
$ 73,686 $ 73,686 $ 13,466 $ 55,020 $ (41,554) $ (36,354)
Effect of Prior -Period Uncorrected Misstatements - - - Rollover Effect of Uncorrected Misstatements $ 13,466 $ 55,020 $ (41,554) $ (36,354)
FS $ $ 3,425,708 $ 603,100 $ 2,822,608 $ 231,159
FS % 0% 9% -1% -16%
Exhibit B
Summary of Corrected Misstatements
For the year ended June 30, 2019
Financial Statement Effects
Increase Increase Increase Increase
(Decrease) (Decrease) (Decrease) (Decrease)
Total Total Net Change In
Description of Corrected Misstatements Debit Credit Assets Uabilities Assets Net Assets
AJE # 1
Net assets without donor restrictions $ 30,371
Total expenses $ 30,371 $ - - $ - $ (30,371)
To correctly rollforward net assets.
ME # 2
Total expenses 33,739
Prepaid expenses and other current assets 33,739 (33,739) - (33,739) (33,739)
To correctly allocate payments between
expenses and prepaid expenses based on
service period.
$ 64,110 $ 64,110 $ (33,739) $ - $ (33,739) $ (64,110)
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2019
with
INDEPENDENT AUDITORS' REPORT THEREON
K j� ^ T I Corbin &
1v1J Company
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc. (the "Organization") complied with the provisions in
Section 4 of the Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services (the "Agreement") regarding the
attached 2019 Expenditures Report, summarizing the expenditures of funds received pursuant to
the Agreement during the period July 1, 2018 to June 30, 2019. The Organization's management
is responsible for its assertion. Our responsibility is to express an opinion on management's
assertion about the Organization's compliance with the specified requirements based on our
examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion
about compliance with the specified requirements is fairly stated, in all material respects. The
nature, timing, and extent of the procedures selected depend on our judgment, including an
assessment of the risks of material misstatement of management's assertion, whether due to
fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide
a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Organization's compliance with
the specified requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the attached 2019 Expenditures Report for
the year ended June 30, 2019 is fairly stated, in all material respects.
This report is intended solely for the information and use of Visit Newport Beach, Inc. and the
City of Newport Beach and is not intended to be and should not be used by anyone other than
these specified parties.
ITT t 10AAn La
KMJ Corbin & Company LLP
Costa Mesa, California
September 30, 2019
p 714 380 6565 f 714 380 6566 535 Anton Blvd Suite 1050 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
viSIT e'W ort
I A C H i arc.
Management Statement Regarding Compliance With Certain Provisions of the
Agreement Between the City of Newport Beach and Visit Newport Beach Inc. for
Tourism Promotion, Branding, and Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are
responsible for complying with the provisions of Section 4 of the Agreement Between the
City of Newport Beach and Visit Newport Beach Inc. (collectively, the "Parties") for
Tourism Promotion, Branding, and Marketing Services (the "Agreement") in that funds
received by the Organization pursuant to this Agreement were expended in accordance
with this Agreement. We are responsible for establishing and maintaining effective
internal controls over compliance with the provisions of Section 4 of the Agreement. We
have performed an evaluation of the Organization's compliance with the provisions of
Section 4 of the Agreement regarding funds expended during the year ended June 30, 2019,
as summarized in the attached 2019 Expenditures Report. Based on this evaluation, we
assert that the Organization was in compliance with the provisions of Section 4 of the
Agreement as described below:
Section. 4 of the Agreement requires the Organization to "develop, plan, carry out, and
supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to Newport Beach as well as increase the amount
of TOT collected through their promotional activities ('Services'). Subject to the foregoing
sentence, the Services shall, at a minimum, include the following: (a) the maintenance of
suitable office space and the employment of competent personnel to carry out the
promotional, branding and marketing duties; (b) the preparation of brochures, publications,
guides, on-line promotions, social network efforts, and other marketing materials and
information that inform prospective tourists and visitors of the recreational activities,
cultural assets, shopping and dining opportunities, night-time stay opportunities, and
natural beauty of Newport Beach; (c) the dissemination of information described in this
section by way of the media, direct mail, handouts, social networking, websites, smart
phone applications, or other means of distribution; and (d) the development and
implementation of specific marketing programs designed to increase awareness of the
Newport Beach brand and to increase business and visitor trade in Newport Beach; and (e)
any additional Services when proposed by the City which are consistent with the promotion
of tourism and the Newport Beach brand which are mutually agreeable and acceptable to
the Parties_"
Vi
By
Ly
Ii e on
Vice esident of Finance
VISIT NEWPORT BEACH, INC.
2019 Expenditures Report
July 1, 2018 -
June 30, 2019
2019 Expenses
Salary and Wages
61010 - Salaries and Wages
57,589
61030 - Payroll Tax Expenses
5,863
61040 - Accrued PTO Expense
1,197
Total Salary and Wages
64,649
Benefits
61125 - Vision Insurance
(223)
61140 - Retirement Plan (401k)
2,819
61160 - Employee Engagement Benefit
500
Total Benefits
3,096
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
5,635
64115 - Office Equipment (non-deprec)
1,045
64120 - Equipment Repairs & Maintenance
300
64125 - Computer Software (non-deprec)
7,772
64130 - Voice and Data - Office
1,143
64145 - Shipping Charges
224
64150 - Bank Fees
609
64160 - Membership Dues
70,260
64170 - Team Meetings
-
64175 - Governance Meeting Expenses
-
64610 - Client Gifts
Total Operating Expenses
86,988
Insurance
63100 - General Liability Insurance
1,163
63300 - Board of Directors Insurance
7,242
Total Insurance
8,405
Professional Fees
64205 - Payroll Processing Service
2,496
64207 - Bloggers
6,100
64201- Audit Fees
6,501
64202 - Tax Preparation Fees
1,300
Total Professional Fees
16,397
Travel Expenses
65100 - Airfare
762
65200 - Accommodations
1,789
65300 - Meals
226
65400 - Transportation Costs
19
65405 - Mileage ($0.535/mile 2017)
165
65500 - Other Travel Costs
116
Total Travel Expenses
3,077
Total General and Administrative
114,867
Advertising Expenses
66101- Advertising - Purchased
611,579
66102 - Advertising - Local Events
16,381
66104 - Advertising Tracking Media
-
66123 - Promotional Client Gifts
54
66202 - Ad Production
29,387
66203 - Creative Design/Development
78,136
66205 - Photography/Video Production
12,741
66212 - Community Sponsorships
156,255
Total Advertising Expenses
904,533
Marketing Expenses
Community Relations
67103 - Community Partner Events
23,027
67101- Research
93,875
67102 - Christmas Boat Parade
178,205
67105 - Awards
328
67107 - Promotional Items
7,569
67108 - Company -Sponsored Events
208
67109 - Hospitality Training
Total Community Relations
303,212
Marketing Collateral
67301- Inspiration Guide
5,645
67302 - Maps
-
67311- Collateral Production Expenses
-
67312 - Collateral Distribution
34,273
Total Marketing Collateral
39,918
Digital Marketing
67501- Social Media
407
67502 - Website Maintenance
124,472
67503 - Online Search Advertising
119,604
67504 - Digital Advertising
15,276
67506 - Mobile Application
47,200
67508 - Website Redesign Expenses
10,716
67511- Digital Lifestyle Channel Production
47,909
66211- CRM Maintenance
28,820
Total Digital Marketing
394,404
Communications/Public Relations
67601- Media Services
12,012
67602 - Media FAM Tours
45,224
67605 - Media Special Programs
223,625
67607 - Media Relations
22,494
67608 - Digital Assets/Media Library
12,792
Total Communications/Public Relations
316,147
Total Marketing Expenses
1,053,681
International Marketing Initiatives
67401- International Brand Awareness Fees
98,002
67402 - International TTI FAM Tours
32,115
67403 - International Promotions
220,631
67404 - International Trade Shows
319,171
67405 - International Airfare
10,699
NOTES:
A
67406 - International Accommodations
4,831
67407 - International Meals
696
67408 - International Transportation Costs
1,315
67409 - International Other Travel Costs
747
67410 - International Business Meals/Entertainment
572
67411 - International Promotional Items
1,567
67412 - International Brand Events
-
67413 - International Sales Missions
15,796
Total International Marketing Initiatives
706,142
NB&Company Fees
68001- NB&Co Fees
2,480,081
Total NB&Company Fees
2,480,081
Total Expenses
5,327,049
Other Expenditures:
Fixed asset additions capitalized
29,953
Website development costs capitalized
74,101
Change in other prepaid expenses and current liabilities, net
93,524
197,558
Total 2018 Expenditures $ 5,524,627
Included in this account are expenditures for or contributions to special events and not -for -profit organizations in Newport Beach as follows:
Vendor
Event
Amount
Newport Beach Marriot Hotel
Fire and Lifeguard Dinner Sponsorship
$ 5,000
Surfrider Foundation
Newport Harbor Underwater Cleanup
$ 1,000
City of Newport Beach
Arts Sponsorship
150,000
$ 156,000
Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries/Benefits $ 1,514,059
Marketing Expenses 432,630
G&A Overhead 533,392
$ 2,480,081
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
For The Years Ended June 30, 2019 and 2018
with
INDEPENDENT AUDITORS' REPORT THEREON
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report.................................................................................................1-2
Financial Statements:
Statements of Financial Position........................................................................................ 3
Statementsof Activities..................................................................................................... 4
Statements of Cash Flows.................................................................................................. 5
Notes to Financial Statements.......................................................................................6-19
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source ................................... 20
Schedule II — Statement of Activities by Funding Source ............................................... 21
in J'
KMCompare
Y
Business Advisors Tax and Audit
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
Report on the Financial Statements
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-profit
organization) (the "Organization"), which comprise the statements of financial position as of June
30, 2019 and 2018, and the related statements of activities and cash flows for the years then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audits 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 financial statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the financial 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 financial 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
p 714 380 6565 f 714 380 6566 535 Anton Blvd Suite 1050 Costa Mesa CA 92626 kmjpartnerscpa.com
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Visit Newport Beach Inc. as of June 30, 2019 and 2018, and the changes
in its net assets and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter - Related Party Transactions
As discussed in Note 8 to the financial statements, Visit Newport Beach Inc. has significant
transactions with a related non-profit organization. Our opinion is not modified with respect to this
matter.
Report on the Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information contained in Schedules I and II on pages 20-21 is
presented for purposes of additional analysis and is not a required part of the 2019 financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the 2019 financial statements.
The information has been subjected to the auditing procedures applied in the audit of the 2019
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the 2019
financial statements or the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the 2019 financial
statements as a whole.
KMJ Corbin & Company LLP
Costa Mesa, California
September 30, 2019
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF FINANCIAL POSITION
June 30,
ASSETS
2019
2018
Current assets:
Cash and cash equivalents
$ 1,588,034 $
743,352
Short-term investments
1,295,721
1,789,515
Accounts receivable
-
58,115
Related -party receivables
30,195
75,927
Prepaid expenses and other current assets
317,496
331,097
Total current assets
3,231,446
2,998,006
Long-term investments
-
98,188
Property and equipment, net
37,704
32,761
Website development costs, net
146,939
103,966
Deposits and other assets
9,619
9,619
$ 3,425,708 $ 3.242.540
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 102,074 $ 188,655
Related -party payables 137,541 204,349
Accrued expenses 21,960 22,032
Accrued payroll and related expenses 224,969 115,269
Group booking incentive reserve 98,206 108,650
Total current liabilities 584,750 638,955
Deferred rent, net of current portion 18,350 12,136
Total liabilities 603,100 651,091
Commitments and contingencies
Net assets without donor restrictions 2,822,608 2,591,449
$ 3,425,708 $ 3.242.540
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF ACTIVITIES
For The Years Ended June 30,
2019 2018
Support and revenues:
Service fee revenues $ 9,875,230 $ 8,953,551
Interest income 46,739 4,627
Other income 1,362 -
Total support and revenues 9,923,331 8,958,178
Expenses:
Marketing (including $2,573,081 and $2,402,277
to Newport Beach & Company during 2019
and 2018, respectively — see Note 8) 7,585,263 6,558,564
General and administrative 456,219 448,608
Salaries and benefits 1,566,163 1,451,788
Depreciation and amortization 84,527 22,526
Total expenses 9,692,172 8,481,486
Change in net assets without donor restrictions 231,159 476,692
Net assets, beginning of year 2,591,449 2,114,757
Net assets, end of year $ 2,822,608 $ 2,591,449
See accompanying notes to financial statements
4
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENTS OF CASH FLOWS
For The Years Ended June 30,
2019
2018
Cash flows from operating activities:
Change in net assets without donor restrictions
$ 231,159
$ 476,692
Adjustments to reconcile change in net assets without
donor restrictions to net cash provided by operating
activities:
Depreciation and amortization
84,527
22,526
Accrued interest income
35,355
-
Changes in operating assets and liabilities:
Accounts receivable
58,115
(52,284)
Related -party receivables
45,732
550,180
Prepaid expenses and other current assets
13,601
(60,275)
Deposits and other assets
-
30,000
Accounts payable
(86,581)
(19,974)
Related -party payables
(66,808)
(490,819)
Accrued expenses
(72)
7,275
Accrued payroll and related expenses
109,700
(33,033)
Group booking incentive reserve
(10,444)
49,950
Deferred rent
6,214
10,085
Net cash provided by operating activities
420,498
490,323
Cash flows from investing activities:
Purchases of investments (1,243,373) (1,887,703)
Proceeds from sales/maturities of investments 1,800,000 -
Website development costs (98,998) (101,249)
Purchases of property and equipment (33,445) (3,512)
Net cash provided by (used in) investing activities 424,184 (1,992,464)
Net change in cash and cash equivalents 844,682 (1,502,141)
Cash and cash equivalents at beginning of year 743,352 2,245,493
Cash and cash equivalents at end of year $ 1,588,034 $ 743,352
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 1 — ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the laws
of the State of California.
Transient Occupancy"TOT")
The Organization currently has an agreement ("TOT Agreement") with the City of Newport Beach
(the "City") through December 31, 2024 to promote tourism and serve the needs of visitors to the
City. Under the terms of the TOT Agreement, the Organization is responsible to develop, plan,
carry out and supervise a program to market and promote the Newport Beach brand and to promote
tourism in, and serve the needs of, visitors to the City as well as increase the amount of Transient
Occupancy Tax collected through its promotional activities.
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized as revenue when received.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease the
percentage of TOT paid to the Organization) as part of its once -annual budget adoption process
for any reason after notice to the Organization and an opportunity for the Organization to formally
comment on the adjustment. For the years ended June 30, 2019 and 2018, the Organization
received approximately 55% of its service fee revenues from the City through the TOT. The City
has the right to terminate the TOT Agreement, without cause, by giving the Organization 365 days'
written notice of its intention to terminate. Should the City reduce or stop its funding to the
Organization due to the Organization's default or termination of the Agreement, the Organization's
operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, and expires of January 31, 2024, pursuant to the Management District Plan, as amended
(the "Plan"). The NBTBID is funded by assessments levied on participating lodging businesses
within a specified district. The assessments are restricted for use for sales promotion and
marketing programs to market the City as a tourist, meeting and event destination as outlined in
the Plan. Either parry may terminate this agreement by providing the other party ninety calendar
days' written notice prior to the effective date of termination. As the Organization is not entitled
to its share of the assessments collected until paid by the City, amounts are recognized as revenue
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 1— ORGANIZATION, continued
when received. For the years ended June 30, 2019 and 2018, the Organization received
approximately 45% of its service fee revenues from the City through TBID assessments.
As of June 30, 2019 and 2018, the NBTBID is represented by nine (9) and eight (8) hotels,
respectively, within the city of Newport Beach which collect a 3.0% tax on short-term stays. The
City is entitled to 0.25% of the receipts annually for the collection of the assessments and
disbursements of the NBTBID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. Accordingly, net assets and changes therein are classified and
reported as follows:
Without donor restrictions — Net assets that are not subject to donor -imposed stipulations.
These assets are available to support the Organization's general activities and operations at the
discretion of the Board of Directors.
With donor restrictions - Net assets that are subject to donor -imposed restrictions. Some donor -
imposed restrictions are temporary in nature, such as those that will be met by the passage of
time or other events specified by the donor. Other donor -imposed restrictions are perpetual in
nature, where the donor stipulates that such resources be maintained in perpetuity. Generally,
the donors of these assets permit the Organization to use all or part of the income earned on
related investments for general or specific purposes.
As of and for the years ended June 30, 2019 and 2018, the Organization had no net assets with
donor restrictions.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor -imposed restrictions. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets are reported as increases
or decreases in net assets without donor restrictions unless their use is restricted by explicit donor
stipulations or by law.
VA
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Reclassifications
Certain amounts reported in the prior period have been reclassified to conform to the current
period's presentation. There was no effect on total net assets or change in net assets as previously
reported.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Significant estimates made by the Organization's
management include, but are not limited to, the collectability of receivables, the recoverability of
long-lived assets, fair value of investments and the allocation of expenses to program activities
and general and administrative. Actual results may differ from those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash and cash
equivalent balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. At June 30, 2019
the Organization had approximately $1,590,000 of uninsured cash and cash equivalent balances.
The Organization periodically reviews the quality of the financial institutions it has deposits with
to minimize risk of loss. To date, no losses have been incurred.
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful
receivables based on a review of all outstanding amounts at year end. Management determines
the allowance for doubtful accounts by identifying troubled accounts based on current and
historical experience. Receivables are written off when deemed uncollectible. For the years ended
June 30, 2019 and 2018, no receivables were deemed uncollectible and were written off. There
were no accounts receivables as of the year ended June 30, 2019. At June 30, 2018 the Organization
considered receivables to be fully collectible and accordingly did not record an allowance for
doubtful accounts.
As of June 30, 2018, one customer accounted for 100% of the Organization's total accounts
receivable balance.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Investments and Fair Value Measurements
Investments and cash equivalents consist of U.S. Treasury Bills which are carried at amortized
cost, which approximates fair value.
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal market,
the most advantageous market for the asset or liability, in an orderly transaction between market
participants on the measurement date. Accounting guidance establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs in priority that
may be used to measure fair value:
Level 1—Quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
The fair value of the Organization's U.S. Treasury Bills (recorded in cash equivalents and
investments) are based partially upon quoted prices in markets that are not active or inputs which
are observable, either directly or indirectly, for substantially the full term of the assets. These
instruments have been classified within Level 2 of the valuation hierarchy.
At June 30, 2019, the Organization had approximately $1,295,000 of uninsured investment
balances. The Organization periodically reviews the quality of the financial institution holding the
investments to minimize risk of loss.
0
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
As of June 30, 2019, the Organization's investments measured at fair value on a recurring basis
were as follows:
June 30, 2019
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Cash equivalents:
U.S. Treasury Bills $ - $ 389,635 $ -
Short-term investments:
U.S. Treasury Bills - 1,295,721 -
As of June 30, 2018, the Organization's investments measured at fair value on a recurring basis
were as follows:
June 30, 2018
Quoted Prices in
Significant
Active Markets
Significant Other Unobservable
for Identical
Observable Inputs
Assets (Level 1)
Inputs (Level 2) (Level 3)
Cash equivalents:
U.S. Treasury Bills $ - $ 99,773 $ -
Short-term investments:
U.S. Treasury Bills - 1,789,515 -
Long-term investments:
U.S. Treasury Bills - 98,188 -
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their estimated
useful lives or the related lease term. Maintenance and repairs are charged to expense as incurred.
Significant renewals and betterments are capitalized.
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
It is the Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated depreciation
or amortization are removed from the accounts and any resulting gain or loss is reflected in the
statements of activities.
Website Development Costs
The Organization accounts for the costs of developing its mobile apps and websites by capitalizing
the costs during the application development stage when it is probable that the project will be
completed and the property will be used to perform the function intended. Website development
costs are amortized on a straight-line basis over their estimated useful lives when completed, which
are typically the earlier of approximately three years or term based on estimated disposal date. The
recoverability of intangible assets is evaluated periodically, taking into account events or
circumstances that warrant revised estimates of useful lives or that indicate that impairment exists.
For the years ended June 30, 2019 and 2018, the Organization capitalized website development
costs of $98,998 and $101,249, respectively.
For the years ended June 30, 2019 and 2018, the Organization recorded amortization expense on
website development costs totaling $56,025 and $3,492, respectively.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated
future cash flows (undiscounted and without interest charges) from the use of an asset are less than
the carrying value, a write -down would be recorded to reduce the related asset to its estimated fair
value. At June 30, 2019 and 2018, the Organization's management believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not
change or demand for the Organization's services will continue, which could result in impairment
of long-lived assets in the future.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Group Booking Incentive
The Organization has established an incentive program for businesses by paying for certain costs
of conferences and group meetings held in Newport Beach hotels in order to attract businesses and
groups to the City. Costs are considered incurred upon the reservation of the hotel for future
meetings. As of June 30, 2019 and 2018, group booking accruals were $98,206 and $108,650,
respectively.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
statements at their estimated fair market values at date of receipt. Contributions of services are
recognized if the services received create or enhance nonfinancial assets or require specialized
skills, are provided by individuals possessing those skills and would typically need to be purchased
if not provided by donation. Other volunteer services that do not meet these criteria are not
recognized in the financial statements as there is no objective basis of deriving their value.
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other local
businesses involved in the tourism industry in Newport Beach. All businesses visited are also
sponsors of the Organization. Many of the Organization's sponsors contribute materials, such as
meals and rooms, in connection with this program. During the years ended June 30, 2019 and
2018, the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
contributions as they do not meet the required criteria.
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the years ended June 30, 2019 and 2018,
the Organization had no unrelated business income.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in operating
expenses. At June 30, 2019 and 2018, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. federal, state or local income tax examinations by
tax authorities for years before 2015.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a
functional basis in Note 5. The Organization incurs expenses that directly relate to, and can be
assigned to, a specific program or supporting activity. The Organization also conducts a number
of activities which benefit both its program objectives as well as supporting services. These costs,
which are not specifically attributable to a specific program or supporting activity, are allocated
by management on a consistent basis among program and supporting services benefited, based on
either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort
incurred by personnel.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards
Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09
provides additional guidance to clarify the principles for recognizing revenue. The standard and
subsequent amendments are intended to develop a common revenue standard for removing
inconsistencies and weaknesses, improve comparability, provide more useful information to users
through improved disclosure requirements, and simplify the preparation of financial statements.
ASU No. 2014-09 is effective for the Organization for annual reporting periods beginning after
December 15, 2018. It may be adopted either by restating all years presented in the financial
statements or by recording the impact of adoption as an adjustment to retained earnings at the
beginning of the year of adoption. The Organization has not yet selected a transition method nor
determined the impact the adoption of ASU No. 2014-09 and its amendments will have on its
financial statements.
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which revises the
accounting related to lessee accounting. Under the new guidance, lessees will be required to
recognize a lease liability and a right -of -use ("ROU") asset of all leases. For finance leases the
lessee would recognize interest expense and amortization of the ROU asset and for operating leases
the lessee would recognize a straight-line total lease expense. ASU No. 2016-02 is effective for
annual reporting periods beginning after December 15, 2019 and early adoption is permitted. This
update will be applied through a modified retrospective transition approach for leases existing at,
or entered into after, the beginning of the earliest comparative period presented in the financial
statements. The Organization's management is in the process of evaluating the impact of this
accounting pronouncement on its financial statements.
In August 2016, the FASB issued ASU No. 2016-14, Not -for -Profit Entities (Topic 958):
Presentation of Financial Statements of Not -for -Profit Entities, which simplifies and improves
how a not -for -profit organization classifies its net assets, as well as the information it presents in
financial statements and notes about its liquidity, financial performance, and cash flows. The
Organization implemented this standard during the year ended June 30, 2019.
In June 2018, the FASB issued ASU No. 2018-08, Not -for -Profit Entities (Topic 958): Clarifying
the Scope and the Accounting Guidance for Contributions Received and Contributions Made. This
standard provides a more robust framework for determining whether a transaction should be
accounted for as a contribution or as an exchange as well as provides additional guidance to assist
in determining whether a contribution is conditional and to better distinguish a donor -imposed
condition from a donor -imposed restriction. The new standard will be effective for the
Organization for its fiscal year ending June 30, 2020 and early application is permitted.
Management is currently evaluating the impact of the adoption of this standard on its financial
statements.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2019, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto.
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 3 — LIQUIDITY AND AVAILABILITY
At June 30, 2019, the Organization has $2,919,950 of financial assets available within one year of
the statement of financial position date to meet cash needs for general expenditures consisting of
cash and cash equivalents of $1,588,034, short-term investments of $1,295,721, related party
receivables of $30,195 and other receivables of $6,000 included in prepaid expenses and other
current assets in the accompanying statement of financial position. None of the financial assets
are subject to donor or other contractual restrictions that make them unavailable for general
expenditures within one year of the statement of financial position. The Organization has a goal
to maintain financial assets, which consist of cash, cash equivalents and short-term investments,
on hand to meet 90 days of normal operating expense, which are, on average, approximately
$800,000 per month. The Organization has a policy to structure its financial assets to be available
as its general expenditures, liabilities, and other obligations come due. The Organization invests
cash in excess of daily requirements in various short-term treasury instruments.
Funding for the Organization is dependent on the hotel room nights booked in Newport Beach
each year and the subsequent portion of the TOT that is allocated through the City to the
Organization and the portion of the TBID assessments that are sent to the Organization from the
TBID Participants. Annual revenue fluctuates depending on annual visitors to Newport Beach.
As a result, the Organization closely monitors the monthly projected and received revenue to
determine if any change needs to be made to budgeted annual expenditures.
NOTE 4 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30:
2019 2018
Leasehold improvements $ 38,468 $ 38,468
Computer equipment 28,711 24,481
Office furniture and fixtures 136,812 110,110
203,991 173,059
Less accumulated depreciation and amortization (166,287) (140,298)
$ 37,704 $ 32,761
For the years ended June 30, 2019 and 2018, the Organization recorded depreciation expense on
property and equipment totaling $28,502 and $19,034, respectively.
15
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 5 - STATEMENT OF FUNCTIONAL EXPENSES
The statement of functional expenses for the year ended June 30, 2019 is as follows:
Program
General and
Activities
Administrative
Total
Personnel expenses:
Salaries
$ 1,096,067
$ 142,945
$ 1,239,012
Payroll taxes and employee benefits
275,157
51,994
327,151
Total personnel expenses
1,371,224
194,939
1,566,163
Other expense:
Marketing
6,600,552
984,711
7,585,263
Office lease
87,313
29,104
116,417
Repairs and maintenance
2,767
18,282
21,049
Insurance
1,163
18,647
19,810
Office supplies
8,786
11,943
20,729
Equipment and equipment rental
10,543
31,640
42,183
Postage and other dues and fees
64,217
49,110
113,327
Meeting and education expenses
2,500
36,162
38,662
Professional fees and services
9,700
42,642
52,342
Depreciation and amortization expense
56,024
28,503
84,527
Travel and related
27,419
4,281
31,700
Total functional expenses
$ 8.242.208
$ 1.449.964
$ 9.692.172
The Organization incurred expenses related to program activities of approximately $7,165,000 for
the year ended June 30, 2018.
NOTE 6 - COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under a lease for its facility, which is accounted for as an operating
lease. The lease expires in September 2022, and rent is payable between $8,359 and $10,221 per
month. As a result of the fourth amendment to this lease, the Organization assigned its rights to
Newport Beach & Company ("NB & Co."), a related party. Under the terms of this lease, this
assignment does not relieve the Organization of its lease obligations. As a result, the Organization
continues to be liable for future rent payments. The facility lease contains a five-year extension
option at the end of the lease term.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 6 — COMMITMENTS AND CONTINGENCIES, continued
Total rent expense incurred by the Organization under operating leases was approximately
$116,000 and $114,000 for the years ended June 30, 2019 and 2018, respectively, and is included
in general and administrative expenses. Such amounts are net of the amounts paid by the related
parry pursuant to the Agreement disclosed in Note 8.
Future minimum payments due on the Organization's allocated portion of the non -cancelable
facility lease commitment in excess of one year are as follows:
Years Ending
June 30,
2020
2021
2022
2023
Commitments
113,000
119,000
123,000
31,000
$ 386,000
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $287 to $5,000 per month over various
terms with one year or less remaining at June 30, 2019 and 2018. From these commitments, the
Organization incurred approximately $350,000 and $358,000 of expenses for the year ended June
30, 2019 and 2018, respectively, which are recorded in marketing expenses in the accompanying
statement of activities.
The Organization has a commitment to contribute $150,000 annually, commencing on June 1,
2014 through December 31, 2024, to the City to be spent on programs or activities that benefit the
public, which is recorded in marketing expenses for the years ended June 30, 2019 and 2018.
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to
make payments to a guaranteed or indemnified parry, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the
laws of the State of California. Pursuant to the TOT Agreement, the Organization also indemnifies
the City and all of its related boards, councils, officers, employees, and volunteers from claims
related to the conduct of the Organization or any of its officers, employees, or associated
individuals. In connection with its facility lease, the Organization has indemnified its lessor for
17
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 6 — COMMITMENTS AND CONTINGENCIES, continued
certain claims arising from the use of the facilities. The duration of the guarantees and indemnities
varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not
provide for any limitation of the maximum potential future payments the Organization could be
obligated to make. Historically, the Organization has not been obligated nor incurred any
payments for these obligations and, therefore, no liabilities have been recorded for these
indemnities and guarantees in the accompanying statements of financial position.
NOTE 7 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan provides
for matching contributions based upon employees' voluntary contributions and the Organization's
contributions. The total expense recorded by the Organization during the years ended June 30,
2019 and 2018 was approximately $75,000 and $68,000, respectively, and is included in general
and administrative expenses.
NOTE 8 — RELATED -PARTY TRANSACTIONS
During the years ended June 30, 2019 and 2018, the Organization had transactions with a related
party that is also a non-profit organization. The related entity, NB & Co., specializes in marketing
and promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB & Co.
as an exclusive provider of services that the Organization shall need to carry out its mission and
obligations to the City. In consideration for these services, the Organization agreed to pay NB &
Co. a monthly fee totaling $93,000 and $78,000 for the years ended June 30, 2019 and 2018,
respectively. The Organization has also agreed to reimburse NB & Co. for all reasonable expenses
incurred by it in carrying out its duties to the Organization, including rent and related facility costs,
payroll and related benefits, and other direct marketing costs. For the years ended June 30, 2019
and 2018, the Organization incurred $2,573,081 and $2,402,277, respectively, from NB & Co. for
these costs, which are recorded in marketing expenses in the accompanying statements of
activities. NB & Co.'s costs for the years ended June 30, 2019 and 2018 were broken out as
follows: $432,630 and $580,672, respectively, of direct marketing, $1,514,059 and $1,346,544,
respectively, of salaries and benefits, and $432,630 and $475,061, respectively, of general and
administrative (including rent and related facility costs). The Agreement expires in March 2021
and with an option for a five-year renewal.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2019 and 2018
NOTE 8 — RELATED -PARTY TRANSACTIONS, continued
In addition, during the years ended June 30, 2019 and 2018, the Organization agreed to contribute
$0 and $5,000, respectively, to the Newport Beach Foundation, a related party that is also a non-
profit organization, which is recorded in marketing expenses in the accompanying statements of
activities.
As of June 30, 2019 and 2018, the Organization has related -party receivables of $30,195 and
$75,927, respectively, and payables of $137,541 and $204,349, respectively, in the accompanying
statements of financial position. These amounts do not bear interest, are not collateralized, and
have no stated repayment terms.
19
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2019
Current assets:
Cash and cash equivalents
Short-term investments
Related -party receivables
Prepaid expenses and other
current assets
Total current assets
Property and equipment, net
Website development costs, net
Deposits and other assets
Intercompany
Current liabilities:
TOT* TBID
$ 751,252
$ 836,782
896,524
399,197
28,580
1,615
129,477
188,019
1,805,833
1,425,613
25,112
12,592
126,520
20,419
9,619
-
4,590
(4,590)
$ 1.971.674 $ 1.454.034
Accounts payable $ 19,900 $ 82,174
Related -party payables 110,515 27,026
Accrued expenses 7,300 14,660
Accrued payroll and related
expenses 4,458 220,511
Group booking incentive reserve - 98,206
Total current liabilities 142,173 442,577
Deferred rent, net of current portion - 18,350
Total liabilities 142,173 460,927
Net assets without donor restrictions 1.829.501 993.107
$ 1,971,674 $ 1.454.034
* Includes balances for other marketing and administrative costs.
Eliminations Total
$ - $ 1,588,034
- 1,295,721
- 30,195
- 317,496
- 3,231,446
- 37,704
- 146,939
- 9,619
$ $ 3.425.708
$ - $ 102,074
- 137,541
- 21,960
- 224,969
- 98,206
- 584,750
- 18,350
- 603,100
2,822,608
20
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2019
Support and revenues:
Service fee revenues
Interest income
Other income
Total support and revenues
Expenses:
Marketing
General and administrative
Salaries and benefits
Depreciation and amortization
Total expenses
Change in net assets without donor
restrictions
Net assets, beginning of year
Net assets, end of year
TOT* TBID
$ 5,381,424 $ 4,493,806
35,651 11,088
1,362 -
5,418,437 4,504,894
Eliminations Total
$ - $ 9,875,230
- 46,739
- 1,362
- 9,923,331
5,174,439 2,410,824 - 7,585,263
114,866 341,353 - 456,219
67,745 1,498,418 - 1,566,163
54,394 30,133 - 84,527
5,411,444 4,280,728 - 9,692,172
6,993 224,166 - 231,159
1,822,508 768,941 - 2,591,449
$ 1. 229.501 $ 993.107 $ - $ 2.822.608
* Includes balances for other marketing and administrative costs.
21
"15'T OYrF Visit Newport Beach, Inc. Leisure Marketing
(TOT)
�1N
A C H
FY2019 and FY2020 Budget
FY2019
BUDGET
Variance
Operating Revenue
Revenue
41000 - TOT/TBID Income
5,014,493
5,230,355
215,862
42000 - Partnership Fees
3,000
3,000
-
43000 - Co -Op Advertising Income
-
-
-
Total Revenue
5,017,493
5,233,355
215,862
Interest Income
-
-
-
Total Operating Revenue
5,017,493
5,233,355
215,862
Expenses
Salary and Wages
61010 - Salaries and Wages
77,480
82,160
4,680
61030 - Payroll Tax Expenses
6,113
6,482
369
Total Salary and Wages
83,593
88,642
5,049
Benefits
61140 - Retirement Plan (401k)
5,424
5,751
327
61150 - Flexible Spending Plan
-
-
-
Total Benefits
5,424
5,751
327
General and Administrative Expenses
Operating Expenses
Operating Expenses
64100 - Office Supplies
64101 - Stationary
-
-
64125 - Computer Software (non-deprec)
6,075
6,075
64130 - Voice and Data - Office
1,140
1,140
64140 - Postage
-
-
64145 - Shipping Charges
-
-
64150 - Bank Fees
540
540
64160 - Membership Dues
62,150
65,000
Z850
64170 - Team Meetings
-
-
64175 - Governance Meeting Expenses
64190 - Business Licensing and Fees
-
-
64300 - Depreciation Expense
209
(209)
64600 - Business Meals/Entertainment
-
-
-
Total Operating Expenses
70,114
72,755
2,641
Insurance
63300 - Board of Directors Insurance
7,900
3,500
(4,400)
Total Insurance
7,900
3,500
(4,400)
Professional Fees
64205 - Payroll Processing Service
-
-
64207 - Bloggers
7,800
7,800
64201- Audit Fees
7,500
7,500
64202 - Tax Preparation Fees
2,500
2,500
Total Professional Fees
17,800
17,800
Travel Expenses
65400 - Transportation Costs
-
-
65405 - Mileage ($0.535/mile 2017)
Total Travel Expenses
Total General and Administrative
95,814
94,055
(1,759)
Advertising Expenses
66101 - Advertising - Purchased
600,000
775,000
175,000
66102 - Advertising - Local Events
40,000
75,000
35,000
66103 - Advertising Promotions - Media
-
-
-
66202 - Ad Production
50,000
75,000
25,000
66203 - Creative Design/Development
100,000
125,000
25,000
66205 - Photography/Video Production
20,000
35,000
15,000
Total Advertising Expenses
810,000
1,085,000
275,000
Marketing Expenses
Community Relations
67103 - Community Partner Events
5,000
5,000
-
66212 - Community Sponsorships
35,000
35,000
67101- Research
125,000
125,000
-
67102 - Christmas Boat Parade
95,000
125,000
30,000
67105 - Awards
-
-
-
67107 - Promotional Items
67108 - Company -Sponsored Events
-
-
-
67109 - Hospitality Training
991
1,740
749
Total Community Relations
260,991
291,740
30,749
Marketing Collateral
67301- Inspiration Guide
10,000
10,000
-
67302 - Maps
-
-
67303 - Special Interest Collateral
10,000
10,000
67311 - Collateral Production Expenses
-
-
67312 - Collateral Distribution
42,000
42,000
"15'T �1N OYrF Visit Newport Beach, Inc. Leisure Marketing (TOT)
A C H FY2019 and FY2020 Budget
Total Marketing Collateral
Digital Marketing
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67505 - Online Contests/Promotions
67506 - Mobile Application
67508 - Website Redesign Expenses
67511- Digital Lifestyle Channel Production
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67601- Media Services
67602 - Media FAM Tours
67605 - Media Special Programs
67607 - Media Relations
67608 - Digital Assets/Media Library
Total Communications/Public Relations
Total Marketing Expenses
International Marketing Initiatives
67401- International Brand Awareness Fees
67402 - International TTI FAM Tours
67403 - International Promotions
67404 - International Trade Shows
67405 - International Airfare
67406 - International Accommodations
67407 - International Meals
67408 - International Transportation Costs
67409 - International Other Travel Costs
67410 - International Business Meals/Entertainment
67413 - International Sales Missions
Total International Marketing Initiatives
NB&Company Fees
68001 - NB&Co Fees
Total NB&Company Fees
Total Expenses
Net Income
FY2019
BUDGET
62,000 62,000
125,000
80,000
30,000
50,000
15,000
50,000
8,000
358,000
30,000
97,687
100,000
30,000
9,600
267,287
948,278
145,000
22,000
225,000
325,000
10,500
8,000
2,000
5,000
500
2,000
745,000
2,329,384
2,329,384
5,017,493
125,000
80,000
30,000
50,000
15,000
125,000
8,000
433,000
30,000
95,000
161,135
30,000
9,600
325,735
1,112,475
145,000
22,000
250,000
10,500
8,000
2,000
5,000
500
2,000
20,000
465,000
2,382,432
2,382,432
5,233,355
Variance
75,000
75,000
(2,687)
61,135
58,448
164,197
25,000
(325, 000)
20,000
(280, 000)
53,048
53,048
215,862
Financial Statements
With Independent Auditors' Report Thereon
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
For The Years Ended June 30, 2017 and 2016
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
TABLE OF CONTENTS
Independent Auditors' Report
Financial Statements:
Statements of Financial Position
Statements of Activities
Statements of Cash Flows
Page
Gd
Notes to Financial Statements 6-13
1 6
j
l
• V' �
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS ADVISORS
THE VALUE OF EXPERIENCE
INDEPENDENT AUDITORS' REPORT
Board of Directors
Newport Beach &Company
We have audited the accompanying fmancial statements of Newport Beach &Company (a
nonprofit organization), which comprise of the statements of financial position as of June 30,
2017 and 2016, and the related statements of activities and cash flows for the years then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audits 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 fmancial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the fmancial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entity's preparation and fair presentation of the financial
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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
ORANGE COUNTY 300 Spectrum Center Drive, Suite 300 •Irvine, CA 92618 • 949.450.6200 •Fax 949.450.6201
SAN DIEGO 9171 Tolvne Centre Drive, Suite 19U •San Diego, CA 92122 • 858.249.7444 •Fax 858.249.7445
www.hwcpa.com
I_ _,�
leading edge alliance
INDEPENDENT AUDITORS' REPORT (CONTINUED)
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Newport Beach & Company as of June 30, 2017 and 2016, and the
changes in its net deficit and its cash flows for the years then ended, in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matter —Related Party Transactions
As discussed in Note 6 to the financial statements, Newport Beach &Company has significant
transactions with a related nonprofit organization and the Organization derives substantially all
of its support and revenue from that related nonprofit organization. Our opinion is not modified
with respect to this matter.
HASKELL &WHITE LLP
Irvine, California
October 4, 2018
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Statements of Financial Position
As of June 30, 2017 and 2016
ASSETS
Current assets:
Cash
Accounts receivable
Related party receivables (Note 6)
Prepaid expenses and other current assets
Total current assets
2017 2016
$ 26,689
55,228
695,168
49,732
826,817
$ 135,525
66,423
212,794
70,728
i; . Kfl
Property and equipment, net (Note 3) 113,046 132,305
$ 939,863 $ 617,775
LIABILITIES AND NET DEFICIT
Current liabilities:
Accounts payable $ 26,220
Related parry payables (Note 6) 626,107
Accrued payroll and related expenses 238,364
Deferred rent 26,438
Total current liabilities 917,129
Deferred rent, net of current portion 63,614
Other noncurrent liabilities 60,000
Total noncurrent liabilities 123,614
Total liabilities 1,040,743
Commitments and contingencies (Note 4)
Unrestricted net deficit (100,880)
Total liabilities and net deficit $ 939,863
See accompanying notes to financial statements.
3
$ 54,413
350,884
198,133
16,531
619,961
63,097
63,097
683,058
(65,283)
$ 617,775
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Statements of Activities
For The Years Ended June 30, 2017 and 2016
Support and revenues:
Service fees from related party (Note 6)
Contribution from related party (Note 6)
Community marketing income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
General and administrative
Depreciation and amortization
Other
Total expenses
Decrease in unrestricted net assets
Net deficit, beginning of year
Net deficit, end of year
2017 2016
$ 2,622,915 $ 2,214,492
- 65,000
339,465 466,555
2,962,380 2,746,047
266,966
287,376
1,769,670
1,550,019
915,334
878,842
41,012
35,339
4,995
921
2,997,977
2,752,497
(35,597) (6,450)
(65,283) (58,833)
$ (100,880) $ (65,283)
See accompanying notes to financial statements.
4
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Statements of Cash Flows
For The Years Ended June 30, 2017 and 2016
2017
Cash flows from operating activities:
Decrease in unrestricted net assets $
(35,597)
Adjustments to reconcile decrease in unrestricted net assets
to net cash (used in) provided by operating activities:
Depreciation and amortization
41,012
Loss on disposal of property and equipment
4,995
Changes in operating assets and liabilities:
Accounts receivable
11,195
Related party receivables
(482,374)
Prepaid expenses and other current assets
20,996
Accounts payable
(28,193)
Related party payables
275,223
Accrued expenses
-
Accrued payroll and related expenses
40,231
Deferred rent
10,424
Other liabilities
60,000
Net cash (used in) provided by operating activities (82,088)
Cash flows from investing activities:
Purchases of property and equipment (26,748)
Net cash used in investing activities (26,748)
Net change in cash (108,836)
Cash, beginning of year 135,525
Cash, end of year $ 26,689
See accompanying notes to financial statements.
5
2016
$ (6,450)
35,339
1,121
11,749
(77,780)
(24,459)
28,719
146,140
(23,105)
15,582
63,377
170,233
(95,769)
(95,769)
74,464
61,061
$ 135,525
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements
For The Years Ended June 30, 2017 and 2016
1. Organization
Nature of Operations
Newport Beach & Company (the "Organization") is a nonprofit organization formed
under the laws of the State of California in 2013. The Organization specializes in
marketing and promotion services related to enhancing the economic development for the
City of Newport Beach (the "City"). The Organization has a service agreement with a
related nonprofit organization that is described in Note 6. The Organization also has
agreements with the City to manage its public access television channel and to provide
services to the Newport Beach Restaurant Association Business Improvement District
and the Balboa Village Merchants Association. By embracing a variety of
neighborhoods, businesses and individual unique voices into a complementary story, the
Organization seeks to strengthen all of its partners, drive new revenue to the City and
enhance the City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City provides management and
consulting services in support of NBTV. Such services include production,
administrative and sponsorship services.
Newport Beach Restaurant Association Business Improvement District ("NB;RA
BID"
The agreement between the Organization and the City provides marketing
planning and programming, public and media relations, research and measurement,
membership, community events services to the City with respect to the NBRA
BID.
Balboa Village Merchants Association ("BVMA")
The agreement between the Organization and BVMA, provides advertising,
promotions and design, online and social media, public relations and e-
communications and other miscellaneous services to BVMA.
Co
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of
accounting in accordance with accounting principles generally accepted in the United
States of America. Net assets and revenues, expenses, gains, and losses are classified
based on the existence or absence of donor -imposed restrictions. As of and for the years
ended June 30, 2017 and 2016, the Organization had no temporarily or permanently
restricted net assets.
Revenues are reported as increases in unrestricted net assets unless use of the related assets
is limited by donor -imposed restrictions. Expenses are reported as decreases in unrestricted
net assets. Gains and losses on investments and other assets are reported as increases or
decreases in unrestricted net assets unless their use is restricted by explicit donor
stipulations or by law. The Organization incurred expenses related to program activities of
$2,195 and $175,902 for the years ended June 30, 2017 and 2016, respectively.
Use of Estimates
The preparation of financial statements requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Significant estimates
made by the Organization's management include, but are not limited to, the collectability
of receivables, the recoverability of long-lived assets and the allocation of certain
expenses to program services and supporting activities. Actual results may differ from
those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments with a maturity of three months
or less when acquired to be cash equivalents. The Organization maintains its cash
balances at various financial institutions. The total cash balances are insured by the
Federal Deposit Insurance Corporation ("FDIC") up to $250,000 per institution. As of June
30, 2017 and 2016, and at various times during the years then ended, the Organization's
cash account balances exceeded the FDIC insured limit. To date, no losses have been
incurred. The Organization periodically reviews the quality of the financial institutions it
has deposits with to minimize risk of loss.
7
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for
doubtful receivables based on a review of all outstanding amounts at year end.
Management determines the allowance for doubtful accounts by identifying troubled
accounts based on current and historical experience. Receivables are written off when
deemed uncollectible. For the year ended June 30, 2017, approximately $12,000 of
receivables were deemed uncollectible and were written off. At June 30, 2017 and 2016,
the Organization considers receivables to be fully collectible and accordingly did not
record an allowance for doubtful accounts.
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at fair value when
received. The cost of purchased assets or fair value of donated assets is depreciated using
the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their
estimated useful lives or the related lease term. Maintenance and repairs are charged to
expense as incurred. Significant renewals and betterments are capitalized. It is the
Organization's policy to capitalize property and equipment over $1,500. At the time of
retirement or other disposition of property and equipment, the cost and accumulated
depreciation or amortization are removed from the accounts and any resulting gain or loss
is reflected in the statement of activities.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the
accompanying statements at their estimated fair market values at date of receipt.
Contributions of services are recognized if the services received create or enhance
nonfinancial assets or require specialized skills, are provided by individuals possessing
those skills and would typically need to be purchased if not provided by donation. Other
volunteer services that do not meet these criteria are not recognized in the financial
statements as there is no objective basis of deriving their value. During the years ended
June 30, 2017 and 2016, the Organization did not have significant contributed materials
and services.
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
2. Summary of Significant Accounting Policies (continued)
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under
Section 501(c)(6) of the United States Internal Revenue Code and for California state
income taxes under Section 23701(d) of the California Revenue and Taxation Code;
therefore, the Organization has no provision for federal or state income taxes. During the
years ended June 30, 2017 and 2016, the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt
tax return. This process includes an analysis of whether tax positions the Organization
takes with regard to a particular item of income or deduction would meet the definition of
an uncertain tax position under current accounting guidance. The Organization believes
its tax positions are appropriate based on current facts and circumstances. The
Organization's policy is to recognize interest accrued related to unrecognized tax benefits
in interest expense and penalties in operating expenses. At June 30, 2017 and 2016, the
Organization did not have any unrecognized tax benefits. The Organization is no longer
subject to income tax examinations by tax authorities for years before 2014.
Subsequent Events
The Organization has evaluated subsequent events through October 4, 2018, the date the
financial statements were available to be issued. Based upon its evaluation, management
has determined that no subsequent events have occurred that would require recognition in
the accompanying financial statements or disclosure in the notes thereto.
Recent Accounting Pronouncements
In August 2016, the Financial Accounting Standards Board issued Accounting Standard
Update ("ASU") No. 2016-14, Not -for -Profit Entities (Topic 958): Presentation of
Financial Statements of Not -for -Profit Entities. This update simplifies and improves
how a not -for -profit organization classifies its net assets, as well as the information it
presents in financial statements and notes about its liquidity, financial performance, and
cash flows. The new standard will be effective for the Organization for its fiscal year
ending June 30, 2019 and early application is permitted. Management is currently
evaluating the impact of the adoption of this standard.
X
2.
3
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
Summary of Significant Accounting Policies (continued)
Recent Accounting Pronouncements (continued)
In February 2016, the FASB issued ASU No. 2016-02, Leases. This update changes the
accounting for leases, requiring lessees to recognize the assets and liabilities that arise
from all leases on their balance sheets. The new lease standard requires a modified
retrospective transition approach for all leases existing at, or entered into after, the date
of initial application, with an option to use certain transition relief. The new standard
will be effective for reporting periods beginning after December 15, 2019, with early
application permitted. Management is currently evaluating the impact of the adoption of
this standard.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with
Customers (Topic 606), which supersedes existing revenue recognition requirements and
most industry specific guidance. This ASU is a comprehensive new revenue recognition
model that requires an entity to recognize revenue to depict the transfer of goods or
services to a customer at an amount that reflects the consideration it expects to receive in
exchange for those goods or services. This new guidance is effective for annual
reporting periods beginning after December 15, 2018 and entities may use either a full
retrospective or a modified retrospective approach to adopt this new guidance.
Management is currently evaluating which transition approach to use and the impact of
this new guidance on the Organization's financial statements.
Property and Equipment
Property and equipment consists of the following at June 30:
2017
Leasehold improvements $ 79,990
Computer equipment 76,206
Office furniture and fixtures 67,923
224,119
Less accumulated depreciation and amortization (111,073)
$ 113,046
2016
$ 79,990
67,641
67,923
215,554
(83,249)
$ 132,305
10
4.
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
Commitments and Contingencies
Lease Agreements
On March 3, 2003, Visit Newport Beach Inc., a related party, entered into a lease
agreement (the "Agreement") for office space. As a result of the fourth amendment to the
Agreement, the Organization is a party to the Agreement originally entered into by Visit
Newport Beach & Company. Under the terms of the Agreement, each assignee shall be
deemed to assume all lease obligations, and as a result, the Organization may be liable for
future rent payments.
Total rent expense incurred by the Organization under operating leases was $364,790 and
$305,870 for the years ended June 30, 2017 and 2016, respectively, and is included in
general and administrative expenses. Such amounts are net of the amounts paid by the
related party pursuant to the Agreement disclosed in Note 6.
The following is a schedule of future minimum lease payments as of June 30, 2017:
Years Ending
June 30,
2018
$ 361,387
2019
371,278
2020
386,373
2021
404,379
2022
424,075
Thereafter
630,573
2,578.065
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be
required to make payments to a guaranteed or indemnified party, in relation to certain
actions or transactions. The Organization indemnifies its directors, officers, employees
and agents, as permitted under the laws of the State of California. In connection with its
facility leases, the Organization has indemnified its lessor for certain claims arising from
the use of the facilities. The duration of the guarantees and indemnities varies and is
generally tied to the life of the related agreement. These guarantees and indemnities do
11
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
4. Commitments and Contingencies (continued)
Guarantees and Indemnities (continued)
not provide for any limitation of the maximum potential future payments the
Organization could be obligated to make. Historically, the Organization has not been
obligated nor incurred any payments for these obligations and, therefore, no liabilities
have been recorded for these indemnities and guarantees in the accompanying statements
of financial position.
Litigation .
The Organization has claims and litigation arising in the normal course of business.
Management believes the resolution of these matters, if any, will not have a material
adverse effect on the Organization's financial statements.
5. Retirement Plan
The Organization has a 401(k) retirement plan covering all eligible employees. The plan
provides for matching contributions based upon employees' voluntary contributions. The
total expense recorded by the Organization during the years ended June 30, 2017 and
2016 was $80,253 and $65,773, respectively, which is recorded in salaries and benefits
expenses in the accompanying statements of activities.
6. Related Party Transactions
During the years ended June 30, 2017 and 2016, the Organization had significant
transactions with a related nonprofit organization. The related entity, Visit Newport
Beach ("VNB"), initiates, sponsors, promotes and carries out plans, policies and activities
to attract conferences and visitors to the City. VNB was the driving force behind the
formation of the Organization. Pursuant to an Agreement for Services ("Agreement")
dated April 1, 2013, the Organization was appointed by VNB as an exclusive provider of
services that VNB requires to carry out its mission and obligations to the City. In
consideration for these services, VNB agreed to pay a monthly fee of $1,000 through the
beginning of January 2015, at which time the monthly fee was increased to $5,000 per
month, plus reimburse the Organization for all reasonable expenses incurred as a part of
carrying out its duties to VNB, including rent, payroll and related benefits, and other
direct marketing costs. For the years ended June 30, 2017 and 2016, the Organization
allocated and billed $2,622,915 and $2,274,492 to VNB and such amounts are recorded
as service fees from related party in the accompanying statements of activities. The
Agreement expired in March 2016 and contained the option for one three-year renewal.
12
NEWPORT BEACH & COMPANY
(A Nonprofit Organization)
Notes to Financial Statements (continued)
For The Years Ended June 30, 2017 and 2016
6. Related Party Transactions (continued)
The Organization renewed this agreement with a five-year renewal period expiring in
March 2021. The renewed agreement also removed the clause for the monthly payment
of $1,000 to the Organization from VNB.
During the year ended June 30, 2017 and 2016, the Organization received contributions
from VNB of $0 and $65,000, respectively.
As of June 30, 2017 and 2016, the Organization has related party receivables of $695,168
and $212,794, respectively, and payables of $626,107 and $350,884, respectively, in the
accompanying statements of financial position. Such amounts do not bear interest, are not
collateralized, and have no stated repayment terms.
13
Expenditures Report
With Independent Accountants' Report Thereon
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
For The Years Ended June 30, 2017 and 2016
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
CONTENTS
Independent Accountants' Report
Management Statement Regarding Compliance With Certain Provisions of the
Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services 2
Expenditures Report for the Years Ended June 30, 2017 and 2016 3-8
,,
HAS I<E LL'���� ��`��� I IG
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS ADVISORS
THE VALUE OF EXPERIENCE
INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc., a nonprofit organization (the "Organization"), complied
with the provisions in Section 4 of the Agreement Between the City of Newport Beach and Visit
Newport Beach Inc. for Tourism Promotion, Branding, and Marketing Services dated September
27, 2011, (the "Agreement") regarding the Expenditures Report, summarizing the expenditures
of funds received pursuant to the Agreement during the years ended June 30, 2017 and 2016.
Management is responsible for the Organization's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the Organization's
compliance based on our examination.
Our examination was conducted in accordance with the attestation standards issued by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management's assertion
is fairly stated, in all material respects. An examination involves performing procedures to obtain
evidence about management's assertion. The nature, timing, and extent of the procedures
selected depend on our judgment, including an assessment of the risks of material misstatement
of management's assertion, whether due to fraud or error. We believe that the evidence we
obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the Expenditures Report for the years ended
June 30, 2017 and 2016, is fairly stated, in all material respects.
This report is intended solely for information and use of the City of Newport Beach and Visit
Newport Beach Inc. and is not intended to be and should not be used by anyone other than the
specified parties.
�y��,�u d �,�.�. ,tom°
HASKELL &WHITE LLP
Irvine, California
October 4, 2018
ORANGE COUNTY 300 Spectrum Center Drive, Suite 300 •Irvine, CA 92618 • 949.450.6200 •Fax 949.450.6201
SAN DIEGO 9171 To��ne Centre Drive, Suite 190 •San Diego, CA 92122 •858.244.7444 •Fax 858.249.7445
www.hwcpa.com
I_=,�
leading edgealliance
VISIT ew OYt
E A C H iroc.
Management Statement Regarding Compliance With Certain Provisions of the Agreement
Between the City of Newport Beach and Visit Newport Beach Inc. for Tourism Promotion,
Branding, and Marketing Services
We, as members of management of Visit Newport Beach Inc. (the "Organization"), are responsible
for complying with the provisions of Section 4 of the Agreement Between the City of Newport
Beach and Visit Newport Beach Inc. (collectively, the "Parties") for Tourism Promotion,
Branding, and Marketing Services (the "Agreement") in that funds received by the Organization
pursuant to this Agreement were expended in accordance with this Agreement. We are responsible
for establishing and maintaining effective internal controls over compliance with the provisions of
Section 4 of the Agreement. We have performed an evaluation of the Organization's compliance
with the provisions of Section 4 of the Agreement regarding funds expended during the years
ended June 30, 2017 and 2016, as summarized in the attached Expenditures Report. Based on this
evaluation, we assert that the Organization was in compliance with the provisions of Section 4 of
the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, plan, carry out, and supervise
a program to market and promote the Newport Beach brand and to promote tourism in, and serve
the needs of, visitors to Newport Beach as well as increase the amount of TOT collected through
their promotional activities ("Services"). Subject to the foregoing sentence, the Services shall, at
a minimum, include the following: (a) the maintenance of suitable office space and the
employment of competent personnel to carry out the promotional, branding and marketing duties;
(b) the preparation of brochures, publications, guides, on-line promotions, social network efforts,
and other marketing materials and information that inform prospective tourists and visitors of the
recreational activities, cultural assets, shopping and dining opportunities, night-time stay
opportunities, and natural beauty of Newport Beach; (c) the dissemination of information
described in this section by way of the media, direct mail, handouts, social networking, websites,
smart phone applications, or other means of distribution; (d) the development and implementation
of specific marketing programs designed to increase awareness of the Newport Beach brand and
to increase business and visitor trade in Newport Beach; and (e) any additional Services when
proposed by the City which are consistent with the promotion of tourism and the Newport Beach
brand which are mutually agreeable and acceptable to the Parties.
Visit
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report
For the Year Ended June 30, 2017
Expenses
Marketing - Newport Beach & Company
68001 • NB&Co Fees $ 2,461,309 A
Total Marketing - Newport Beach & Company 2,461,309
Marketing
66101 • Advertising -Consumer
427,213
66102 Advertising - Local Events
133,661
66103 Advertising Promotions - Media
250
66104 Advertising Promotions - Non -Media
500
66105 Advertising Consulting Fees
101,500
66202 Ad Production
137,246
66203 Creative Design/Development
41,638
66205 PhotographyNideo Production
34,022
66206 Other Contingencies
736
66212 Community Sponsorships
10,504
67101 Research
155,142
67102 Christmas Boat Parade
53,166
67103 Community Partner Events
44,743
67105 Awards
245
67107 Promotional Items
2,686
67108 Company -Sponsored Events
91,422
67109 Hospitality Training
334
67302 Maps
44
67309 Marketing Plan
7,870
67311 Collateral Production Expenses
35,164
67312 Collateral Distribution
25,618
67401 International Brand Awareness Fees
100,391
67402 International TTI FAM Tours
2,002
67403 International Promotions
131,258
67404 International Trade Shows
1,927
67405 International Airfare
9,845
67406 International Accommodations
15,124
67407 International Meals
283
67408 International Transportation Costs
1,219
67409 International Other Travel Costs
260
67410 International Business Meals/Entertainment
528
67501 Social Media
168
67502 Website Maintenance
91,527
67503 Online Search Advertising
158,244
67504 Digital Advertising
18,773
67506 Mobile Application
10,500
67508 Website Redesign Expenses (non -amortizable)
11,167
67511 Digital Lifestyle Channel Production
12,561
67601 Media Services
39,347
67602 Media FAM Tours
40,750
3
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2017
67603 Media Promotions 217
67604 PR/Media Consulting Fees 14,597
67605 Media Special Programs 156,445
67608 Digital Assets/Media Library 9,588
Total Marketing 2,130,425
General and Administrative
63200 Workers Compensation Insurance
1,469
63300 Board of Directors Insurance
8,700
64100 Office Supplies
168
64101 Stationary
134
64125 Computer Software (non-deprec)
7,581
64130 Voice and Data - Office
1,098
64145 Shipping Charges
298
64150 Bank Fees
469
64160 Membership Dues
72,113
64190 Business Licensing and Fees
10
64201 Audit Fees
5,180
64202 Tax Preparation Fees
1,100
64204 • Legal Fees
1,155
64205 • Payroll Processing Service
2,623
64206 • Independent Contractors
2,293
64600 • Business Meals/Entertainment
288
65100 • Airfare
2,621
Total General and Administrative
107,300
Salaries and Benefits
61010 Salaries and Wages
52,391
61030 Payroll Tax Expenses
5,817
61040 Accrued PTO Expense
686
61140 Retirement Plan (401k)
2,697
Total Salaries and Benefits
61,591
Depreciation and Amortization
64300 Depreciation Expense 6,544
67508 Website Redesign Expenses (amortizable) 30,927
Total Depreciation and Amortization 37,471
Total Expenses 4,798,096
Other Expenditures:
Change in prepaid expenses and current liabilities, net (400,219)
Total 2017 Expenditures $ 4,397,877
2
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2017
NOTES:
A Consists of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries & Benefits $ 1,565,367
G&A Overhead 895,942
$ 2,461,309
5
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report
For the Year Ended June 30, 2016
Expense
61000 • Salaries
61010 Salaries $ 51,605
61030 Payroll Tax Expenses 6,299
Total 61000 • Salaries 57,904
61100 • Benefits
61140 Retirement Plan (401k) 1,191
61160 Personnel Benefit 225
Total 61100 • Benefits 1,416
62000 • Office Expenses
62110 • Office Repairs and Maintenance 69
Total 62000 • Office Expenses 69
63000•Insurance
63300 • Board of Directors Insurance 8,693
Total 63000 • Insurance 8,693
64000 • Operating Expenses
64100 Office Supplies
295
64101 Stationary
194
64115 Office Equipment (non-deprec)
93
64125 Computer Software (non-deprec)
400
64130 Voice and Data - Office
906
64145 Shipping Charges
411
64150 Bank Fees
687
64160 Membership Dues
77,867
64175 Governance Meeting Expenses
10
64190 Business Licensing and Fees
30
64200 • Professional Services
64201 Audit Fees
4,460
64203 Recruiting Fees
75
64205 Payroll Processing Service
2,513
Total 64200 • Professional Services
7,048
64300 • Depreciation Expense
5,002
64310 Contribution Expense
100
64500 Other Operating Expense
10,000
Total 64000 • Operating Expenses
103,044
65000 • Travel
65405 • Mileage 4
Total 65000 • Travel 4
2
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2016
Expense
61000 • Salaries
61010 Salaries $ 51,605
61030 Payroll Tax Expenses 6,299
Total 61000 • Salaries 57,904
61100 • Benefits
61140 Retirement Plan (401k) 1,191
61160 Personnel Benefit 225
Total 61100 • Benefits 1,416
62000 • Office Expenses
62110 • Office Repairs and Maintenance 69
Total 62000 • Office Expenses 69
63000•Insurance
63300 • Board of Directors Insurance 8,693
Total 63000 • Insurance 8,693
64000 • Operating Expenses
64100 Office Supplies
295
64101 Stationary
194
64115 Office Equipment (non-deprec)
93
64125 Computer Software (non-deprec)
400
64130 Voice and Data - Office
906
64145 Shipping Charges
411
64150 Bank Fees
687
64160 Membership Dues
77,867
64175 Governance Meeting Expenses
10
64190 Business Licensing and Fees
30
64200 • Professional Services
64201 Audit Fees
4,460
64203 Recruiting Fees
75
64205 Payroll Processing Service
2,513
Total 64200 • Professional Services
7,048
64300 • Depreciation Expense
5,002
64310 Contribution Expense
100
64500 Other Operating Expense
10,000
Total 64000 • Operating Expenses
103,044
65000 • Travel
65405 • Mileage 4
Total 65000 • Travel 4
7
VISIT NEWPORT BEACH INC.
(A Nonprofit Organization)
Expenditures Report (continued)
For the Year Ended June 30, 2016
67500 • Online Marketing
67501 Social Media
1,093
67502 Website Maintenance
68,398
67503 Online Search Advertising
158,497
67504 Digital Advertising
31,652
67505 Online Contests/Promotions
300
67506 Mobile Application
10,500
67508 Website Redesign Expenses
95,704
67510 Software (non-deprec)
1,430
Total 67500 • Online Marketing
367,574
67600 • Public Relations
67601 Media Services
56,492
67602 Media FAM Tours
35,432
67604 Consulting Fees
70,483
67605 Special Programs
3,140
67607 Media Relations
9,406
67608 Digital Asset/Media Library
7,015
Total 67600 • Public Relations
181,968
Total 67000 • Marketing
1,393,883
68000 • Newport Beach & Company Fees
68001 NB&Co Fees
2,214,492 A
68002 NB&Co Contributions
65,000
Total 68000 • Newport Beach & Company Fees
2,279,492
Total Expense
4,591,834
Other Expenditures:
Change in prepaid expenses and current liabilities, net 450,516
Total 2016 Expenditures 5,042,350
NOTES:
A Consists of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries & Benefits $ 1,550,018
G&A Overhead 664,474
2,214,492
N.
Ordinary Income/Expense
Income
40000•Income
41100•TBIDIncome
Total 40000 • Income
Total Income
Expense
61000 • Salaries
61010 • Salaries
61015 • Bonuses and Commissions
61020 • Auto Allowance
61030 • Payroll Tax Expenses
Total 61000 • Salaries
61100•Benefits
61110 • Medical Insurance
61120•Dental Insurance
61125 • Vision Insurance
61130 • Life/SD/LTD Insurance
61140 • Retirement Plan (401k)
61150 • Flexible Spending Plan
61160 • Personnel Benefit
Total 61100 • Benefits
62000 • Office Expenses
62100•Lease
62110 • Office Repairs and Maintenance
Total 62000 • Office Expenses
63000•Insurance
63100 • General Liability Insurance
63200 • Workers Compensation Insurance
63300 • Board of Directors Insurance
Total 63000•Insurance
64000 • Operating Expenses
64100 • Office Supplies
64101 • Stationary
64110 • Office Equipment Leases
64115.Office Equipment (non-deprec)
64120 • Equipment Repairs & Maintenance
64125 • Computer Software (non-deprec)
64130 • Voice and Data - Office
64135 • Telephone - Mobile
64140•Postage
64145 • Shipping Charges
64150 • Bank Fees
64160 • Membership Dues
64165 • Subscriptions
64170 • Team Meetings
64175 • Governance Meeting Expenses
64180 • Education
64200 - Professional Services
64201 • Audit Fees
Conference Sales
Visit Newport Beach Inc.
Statement of Activities
July 2015 - September
2015 $ Over Budget
Notes
Remaining
FY2016 Budget Amount
1,097,712.19
1,117,289.00
(19,576.81)
4,094,082.00
2,996,369.81
1,097,712.19
1,117,289.00
(19,576.81)
4,094,082.00
2,996,369.81
1,097,712.19
1,117,289.00
(19,576.81)
4,094,082.00
2,996,369.81
168,650.28
186,630.00
17,979.72 *budgeted for a Special Events coordinator - not hired
808,730.00
640,079.72
30,387.59
34,458.00
4,070.41
194,865.00
164,477.41
4,350.00
4,425.00
75.00
17,700.00
13,350.00
12,567.92
17,792.00
5,224.08
80,580.00
68,012.08
215,955.79
243,305.00
27,349.21
1,101,875.00
885,919.21
17,945.70
17,226.00
(719.70)
69,846.00
51,900.30
1,712.55
1,911.00
198.45
7,644.00
5,931.45
218.46
252.00
33.54
1,020.00
801.54
1,493.40
1,671.00
177.60
6,684.00
5,190.60
12,988.86
15,570.00
2,581.14
70,464.00
57,475.14
(0.12)
0.00
0.12
500.00
500.12
651.00
801.00
150.00
3,204.00
2,553.00
35,009.85
37,431.00
2,421.15
159,362.00
124,352.15
22,896.00
180.00
23,076.00
25,140.00 2,244.00
0.00 (180.00)
25,140.00 2,064.00
103,038.00 80,142.00
0.00 (180.00)
103,038.00 79,962.00
0.00
0.00
0.00
808.00
808.00
756.00
756.00
0.00
3,024.00
2,268.00
1,390.00
2,000.00
610.00
3,006.00
1,616.00
2,146.00
2,756.00
610.00
6,838.00
4,692.00
681.94
1,500.00
818.06
6,000.00
5,318.06
3,871.00
3,000.00
(871.00)
3,000.00
(871.00)
742.62
729.00
(13.62)
2,916.00
2,173.38
351.13
300.00
(51.13)
1,200.00
848.87
2,034.00
2,034.00
0.00
8,136.00
6,102.00
1,030.88
0.00
(1,030.88)
0.00
(1,030.88)
948.95
831.00
(117.95)
3,324.00
2,375.05
1,904.50
1,995.00
90.50
7,980.00
6,075.50
0.00
75.00
75.00
300.00
300.00
128.27
225.00
96.73
900.00
771.73
70.00
90.00
20.00
360.00
290.00
16,937.64
15,000.00
(1,937.64)
29,505.00
12,567.36
155.95
0.00
(155.95)
0.00
(155.95)
7,929.12
8,200.00
270.88
30,000.00
22,070.88
0.00
0.00
0.00
0.00
0.00
69.00
2,500.00
2,431.00
10,000.00
9,931.00
0.00
0.00
0.00
1,000.00
1,000.00
64202 • Tax Preparation Fees
64203 Recruiting Fees
64204•Legal Fees
64205 • Payroll Processing Service
Total 64200 • Professional Services
64300 • Depreciation Expense
64500 • Other Operating Expense
64600 • Business Meals/Entertainment
64700•Temporary Personnel
Total 64000. Operating Expenses
65000•Travel
65100 • Airfare
65200 • Accommodations
65300 • Meals
65400 • Transportation Costs
65405 • Mileage
65500 • Other Travel Costs
Total 65000 • Travel
66000 • Advertising
66100 • Meetings Advertising
66102•Production
66103 • Special Promotions
66121 • Gift Cards
66122 • Promotional Events
66123 • Client Gifts
Total 66103 • Special Promotions
66105 • Advertising Consulting Fees
Total 66000 • Advertising
66200 • Direct Sales Initiatives
66202 • Site Inspections
66203 • Client Events
66243•International Sales Missions
66205•Database/Prospecting
66206 • Conference Services
66207 • CRM Maintenance
66220 • Trade Show Expense
66221 • Travel Expenses
66222 • Registration
66223•Booth Expenses
66224 • Shipping
66225•Sponsorship
Total 66220 • Trade Show Expense
66230•Sponsorships
66212 • Community Sponsorships
66231 • Group Booking Incentives
66232 • Hosted Industry Events
66233 • Industry Partnerships
66234•Industry Sponsorships
Total 66230•Sponsorships
Conference Sales
Visit Newport Beach Inc.
Statement of Activities
July 2015 - September
Remaining
2015
$ Over Budget Notes
FY2016 Budget
Amount
0.00
0.00
0.00
500.00
500.00
208.96
0.00
(208.96)
0.00
(208.96)
0.00
0.00
0.00
0.00
0.00
725.90
675.00
(50.90)
2,700.00
1,974.10
934.86
675.00
(259.86)
4,200.00
3,265.14
7,884.74
1,262.00
(6,622.74)
5,048.00
(2,836.74)
0.00
314.00
314.00
1,514.00
1,514.00
1,060.33
2,250.00
1,189.67
9,000.00
7,939.67
0.00
0.00
0.00
0.00
0.00
46,734.93
40,980.00
(5,754.93)
123,383.00
76,648.07
1,758.95
3,000.00
1,241.05
7,000.00
5,241.05
3,844.22
2,650.00
(1,194.22)
6,150.00
2,305.78
752.63
450.00
(302.63)
1,650.00
897.37
2,654.88
600.00
(2,054.88)
1,650.00
(1,004.88)
20.76
0.00
(20.76)
0.00
(20.76)
93.79
150.00
56.21
550.00
456.21
91125.23
6,850.00
(2,275.23)
17,000.00
7,874.77
3,000.00
6,000.00
3,000.00
95,000.00
92,000.00
1,137.96
0.00
(1,137.96)
50,000.00
48,862.04
16,382.70
15,000.00
(1,382.70)
60,000.00
43,617.30
354.27
2,500.00
2,145.73
20,000.00
19,645.73
16,210.86
11,500.00
(4,710.86)
35,000.00
18,789.14
32,947.83
29,000.00
(3,947.83)
115,000.00
82,052.17
15,000.00
15,000.00
0.00
60,000.00
45,000.00
52,085.79
50,000.00
(2,085.79)
320,000.00
267,914.21
10,153.13
15,000.00
4,846.87
50,000.00
39,846.87
7,093.74
6,000.00
(1,093.74)
103,500.00
96,406.26
0.00
0.00
0.00
0.00
0.00
29,850.80
26,666.00
(3,184.80)
130,000.00
100,149.20
2,174.40
250.00
(1,924.40)
1,000.00
(1,174.40)
3,000.00
0.00
(3,000.00)
0.00
(3,000.00)
22,888.98
19,000.00
(3,888.98)
103,000.00
80,111.02
56,145.00
47,500.00
(8,645.00)
287,500.00
231,355.00
28,846.83
22,000.00
(6,846.83)
126,000.00
97,153.17
1,138.52
6,000.00
4,861.48
23,000.00
21,861.48
3,500.00
0.00
(3,500.00)
(3,500.00)
112,519.33
94,500.00
(18,019.33)
539,500.00
426,980.67
0.00
0.00
0.00
155,000.00
155,000.00
89,319.59
44,000.00
(45,319.59)
185,000.00
95,680.41
299.90
0.00
(299.90)
180,000.00
179,700.10
24,500.00
28,500.00
4,000.00
162,000.00
137,500.00
5,000.00
10,003.00
5,003.00
40,000.00
35,000.00
119,119.49
82,503.00
(36,616.49)
722,000.00
602,880.51
66240 • Customized Destination Support
66241 • Partner Travel Expenses - Sales Calls
66242 • Trade Shows - Partner Expenses
66243 • Booking Incentives
66244 • Client Events/Relations
66245 • Client Gifts
66246 • Business Meals/Entertainment
66247 • Partner Engagement Expenses
66248 • Group Sales Program
Total 66240 • Customized Destination Support
Total 66200 • Direct Sales Initiatives
67000•Marketing
67003 • Research
67004 • Group/Sales Marketing
Total 67000 • Marketing
Total Expense
Net Ordinary Income
Other Income/Expense
Other Income
46000 • Other Income
46001 • Interest Income
Total 46000. Other Income
Total Other Income
Net Other Income
Net Income
Conference Sales
Visit Newport Beach Inc.
Statement of Activities
July 2015 - September
2015 $ Over Budget
0.00
0.00
0.00
0.00
0.00
0.00
52,155.76
53,750.00
1,594.24
11,766.33
2,000.00
(9,766.33)
150.00
0.00
(150.00)
610.61
0.00
(610.61)
0.00
3,000.00
3,000.00
59,220.65
70,000.00
10,779.35
123,903.35
128,750.00
4,846.65
407,814.24
353,669.00
(54,145.24)
1,002.08
886.00
(116.08)
41,470.00
27,000.00
(14,470.00)
42,472.08
27,886.00
(14,586.08)
834,419.91
788,017.00
(46,402.91)
263,292.28
329,272.00
(65,979.72)
16.86
0.00
16.86
16.86
0.00
16.86
16.86
0.00
16.86
16.86
0.00
16.86
263,309.14
329,272.00
(65,962.86)
Notes
Remaining
FY2016 Budget Amount
0.00
0.00
0.00
0.00
375,000.00
322,844.24
2,000.00
(9,766.33)
0.00
(150.00)
0.00
(610.61)
13,000.00
13,000.00
200,000.00
140,779.35
590,000.00
466,096.65
2,136,000.00 1,728,185.76
18,586.00
17,583.92
108,000.00
66,530.00
126,586.00
84,113.92
4,094,082.00
3,259,662.09
TBID Visit Newport Beach Inc.
Statement of Activity Prev Year Comparison
July through September 2015
Ordinary Income/Expense
Income
40000 - Income
41100 - TBID Income
Total 40000 • Income
Total Income
Gross Profit
Expense
61000 - Salaries
61010 • Salaries
61015 - Bonuses and Commissions
61020 • Auto Allowance
61030 • Payroll Tax Expenses
Total 61000 • Salaries
Jul - Sep 15 Jul - Sep 14 $ Change % Change
1,097,712.19
1,018,620.57
79,091.62
7.77%
1,097,712.19
1,018,620.57
79,091.62
7.77%
1,097,712.19
1,018,620.57
79,091.62
7.77%
1,097,712.19
1,018,620.57
79,091.62
7.77%
168,650.28
161,330.15
7,320.13
4.54%
30,387.59
39,548.00
(9,160.41)
(23.16%)
4,350.00
3,170.00
1,180.00
37.22%
12,567.92
14,588.01
(2,020.09)
(13.85%)
215,955.79
218,636.16
(2,680,37)
(1.23%)
61100 - Benefits
61110 • Medical Insurance
17,945.70
15,344.14
2,601.56
16.96%
61120 • Dental Insurance
1,712.55
1,220.15
492.40
40.36%
61125 - Vision Insurance
218.46
142.12
76.34
53.72%
61130 • Life/SD/LTD Insurance
1,493.40
1,294.83
198.57
15.34%
61140 • Retirement Plan (401k)
12,988.86
14,438.51
(1,449.65)
(10.04%)
61150 • Flexible Spending Plan
(0.12)
314.97
(315.09)
(100.04%)
61160 • Personnel Benefit
651.00
203.99
447.01
219.13%
Total 61100 • Benefits
35,009.85
32,958.71
2,051.14
6.22%
62000 • Office Expenses
62100 • Lease
22,896.00
21,468.58
1,427.42
6.65%
62110 - Office Repairs and Maintenance
180.00
180.00
0.00
0.0%
Total 62000 • Office Expenses
23,076.00
21,648.58
1,427.42
6.59%
63000•Insurance
63200 - Workers Compensation Insurance
756.00
1,008.00
(252.00)
(25.0%)
63300 • Board of Directors Insurance
1,390.00
0.00
1,390.00
100.0%
Total 63000 • Insurance
2,146.00
1,008.00
1,138.00
112.9%
64000 • Operating Expenses
64100 • Office Supplies
681.94
640.59
41.35
6.46%
64101 - Stationary
3,871.00
221.40
3,649.60
1,648.42%
64110 • Office Equipment Leases
742.62
1,167.51
(424.89)
(36.39%)
64115 - Office Equipment (non-deprec)
351.13
2,481.34
(2,130.21)
(85.85%)
64120 • Equipment Repairs & Maintenance
2,034.00
2,034.00
0.00
0.0%
64125 • Computer Software (non-deprec)
1,030.88
648.98
381.90
58.85%
64130 • Voice and Data - Office
948.95
933.64
15.31
1.64%
64135 - Telephone - Mobile
1,904.50
1,679.08
225.42
13.43%
64145 • Shipping Charges
128.27
200.25
(71.98)
(35.95%)
64150 • Bank Fees
70.00
205.00
(135.00)
(65.85%)
64160 • Membership Dues
16,937.64
(50.00)
16,987.64
33,975.28%
64165 - Subscriptions
155.95
0.00
155.95
100.0%
64170 • Team Meetings
7,929.12
7,875.00
54.12
0.69%
64180 - Education
69.00
22.71
46.29
203.83%
64200 • Professional Services
64201 - Audit Fees
0.00
0.00
0.00
0.0%
64203 • Recruiting Fees
208.96
0.00
208.96
100.0%
64205 • Payroll Processing Service
725.90
692.80
33.10
4.78%
Total 64200 • Professional Services
934.86
692.80
242.06
34.94%
64300 - Depreciation Expense
7,884.74
3,223.89
4,660.85
144.57%
64500 • Other Operating Expense
0.00
1,400.00
(1,400.00)
(100.0%)
64600 • Business Meals/Entertainment
1,060.33
1,623.30
(562.97)
(34.68%)
Total 64000 • Operating Expenses
46,734.93
24,999.49
21,735.44
86.94%
65000 - Travel
65100 • Airfare
1,758.95
1,544.49
214.46
13.89%
65200 - Accommodations
3,844.22
1,826.02
2,018.20
110.53%
65300 • Meals
752.63
343.70
408.93
118.98%
65400 • Transportation Costs
2,654.88
803.92
1,850.96
230.24%
65405 • Mileage
20.76
0.00
20.76
100.0%
65500 • Other Travel Costs
93.79
133.99
(40.20)
(30.0%)
TBID Visit Newport Beach Inc.
Statement of Activity Prev Year Comparison
July through September 2015
Total 65000 - Travel
66000 • Advertising
66100 - Meetings Advertising
66102•Production
66103 - Special Promotions
66121 • Gift Cards
66122 - Promotional Events
66123 - Client Gifts
Total 66103 - Special Promotions
66105 • Advertising Consulting Fees
Total 66000 • Advertising
66200 • Direct Sales Initiatives
66202 • Site Inspections
66203 • Client Events
66204 • International Sales Missions
66205•Database/Prospecting
66206 • Conference Services
66207 • CRM Maintenance
66220 • Trade Show Expense
66221 - Travel Expenses
66222 - Registration
66223 - Booth Expenses
66224 - Shipping
66225•Sponsorship
Total 66220 • Trade Show Expense
66230•Sponsorships
66212 • Community Sponsorships
66231 - Group Booking Incentives
66232 • Hosted Industry Events
66233 • Industry Partnerships
66234 • Industry Sponsorships
Total 66230 • Sponsorships
Total 66200 • Direct Sales Initiatives
66240 - Customized Destination Support
66242 • Trade Shows - Partner Expenses
66243 • Booking Incentives
66244 • Client Events/Relations
66245 - Client Gifts
66246 • Business Meals/Entertainment
66247 • Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total 66240 - Customized Destination Support
67000 • Group Sales Marketing
67003 - Research
67004 - Marketing Consultants
Total 67000 • Group Sales Marketing
Total Expense
Net Ordinary Income
Other Income/Expense
Other Income
46000 • Other Income
46001 • Interest Income
Total 46000 - Other Income
Total Other Income
Net Other Income
Net Income
Jul - Sep 15 Jul - Sep 14 $ Change % Change
9,125.23 4,652.12 4,473.11 96.1S%
3,000.00
10,092.00
(7,092.00)
(70.27%)
1,137.96
0.00
1,137.96
100.0%
16,382.70
9,600.00
6,782.70
70.65%
354.27
694.00
(339.73)
(48.95%)
16,210.86
9,910.99
6,299.87
63.56%
32,947.83
20,2 44.99
12,742.84
63.07%
15,000.00
3,000.00
12,000.00
400.0%
52,085.79
33,296.99
18,788.80
56.43%
10,153.13
12,937.61
(2,784.48)
(21.52%)
7,093.74
2,519.28
4,574.46
181.58%
0.00
540.00
(540.00)
(100.0%)
29,850.80
43,218.30
(13,367.50)
(30.93%)
2,174.40
1,069.23
1,105.17
103.36%
3,000.00
0.00
3,000.00
100.0%
22,888.98
22,613.59
275.39
1.22%
56,145.00
21,765.00
34,380.00
157.96%
28,846.83
7,554.73
21,292.10
281.84%
1,138.52
644.19
494.33
76.74%
3,500.00
0.00
3,500.00
100.0%
112,519.33
52,5 77.51
59,941.82
114.01%
0.00
50,000.00
(50,000.00)
(100.0%)
89,319.59
34,207.70
55,111.89
161.11%
299.90
3,732.36
(3,432.46)
(91.97%)
24,500.00
7,807.48
16,692.52
213.8%
5,000.00
0.00
5,000.00
100.0%
119,119.49
95,747.54
23,371.95
24.41%
283,910.89
208,609.47
75,301.42
36.1%
0.00
3,000.00
(3,000.00)
(100.0%)
52,155.76
915.00
51,240.76
5,600.08%
11,766.33
19,681.04
(7,914.71)
(40.22%)
150.00
0.00
150.00
100.0%
610.61
66.24
544.37
821.82%
0.00
6,300.20
(6,300.20)
(100.0%)
59,220.65
7,352.87
51,867.78
705.41%
123,903.35
37,315.35
86,588.00
232.04%
1,002.08
3,500.00
(2,497.92)
(71.37%)
41,470.00
0.00
41,470.00
100.0%
42,472.08
3,500.00
38,972.08
1,113.49%
834,419.91
586,624.87
247,795.04
42.24%
263,292.28
431,995.70
(168,703.42)
(39.05%)
16.86
18.95
(2.09)
(11.03%)
16.86
18.95
(2.09)
(11.03%)
16.86
18.95
(2.09)
(11.03%)
16.86
18.95
(2.09)
(11.03%)
263,309.14
432,014.65
(168,705.51)
(39.050/o]
TBID Visit Newport Beach Inc.
Statement of Position Prev Year Comparison
As of September 30, 2015
ASSETS
Current Assets
Checking/Savings
11000 • Bank Accounts
11205 • Checking - Union Bank
11210 • Money Market Account
11215 • Money Market - Union Bank
Total 11210 • Money Market Account
Total 11000 • Bank Accounts
Total Checking/Savings
Other Current Assets
13000 • Other Current Assets
13200 • Prepaid Expenses
Total 13000 • Other Current Assets
Total Other Current Assets
Total Current Assets
Fixed Assets
14000 • Fixed Assets
14100 • Leasehold Improvements
14110 • Accum. Deprec.- Leasehold
14200 • Office Furniture and Fixtures
14210 • Accum. Deprec. - Office Furn.
14300 • Computer Equipment
14310 • Accum. Deprec. - Computer
Total 14000 • Fixed Assets
Total Fixed Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
21000 • Accounts Payable
21200 • Accounts Payable - TBID
Total 21000 • Accounts Payable
Total Accounts Payable
Sep 30, 15 Sep 30, 14 $ Change % Change
129,818.27
381,523.99
(251,705.72)
(65.97%)
9,518.35
50,344.96
(40,826.61)
(81.09%)
9,518.35
50,344.96
(40,826.61)
(81.09%)
139,336.62
431,868.95
(292,532.33)
(67.74%)
139,336.62
431,868.95
(292,532.33)
(67.74%)
281,818.33
157,346.88
124,471.45
79.11%
281,818.33
157,346.88
124,471.45
79.11%
281,818.33
157,346.88
124,471.45
79.11%
421,154.95
589,215.83
(168,060.88)
(28.52%)
36,744.90
36,744.90
0.00
0.0%
(19,772.67)
(12,292.95)
(7,479.72)
(60.85%)
110,110.01
36,838.95
73,271.06
198.9%
(26,637.77)
(8,993.33)
(17,644.44)
(196.2%)
4,956.00
0.00
4,956.00
100.0%
(1,241.26)
0.00
(1,241.26)
(100.0%)
104,159.21
52,297.57
51,861.64
99.17%
104,159.21
52,297.57
51,861.64
99.17%
525,314.16
641,513.40
(116,199.24)
(18.11%)
27,410.62 73,015.38 (45,604.76) (62.46%)
27,410.62 73,015.38 (45,604.76) (62.46%)
27,410.62 73,015.38 (45,604.76) (62.46%)
Credit Cards
22000 • Credit Cards
22100 • American Express Corporate 23,795.52 25,276.47 (1,480.95) (5.86%)
Total 22000 • Credit Cards 23,795.52 25,276.47 (1,480.95) (5.86%)
Total Credit Cards 23,795.52 25,276.47 (1,480.95) (5.86%)
TBID Visit Newport Beach Inc.
Statement of Position Prev Year Comparison
As of September 30, 2015
Other Current Liabilities
23000 • Other Current Liabilities
23100 • Accrued Expenses
23110 • Accrued Payroll
23115 • Accrued Paid Time Off
23110 • Accrued Payroll - Other
Total 23110 • Accrued Payroll
Sep 30, 15 Sep 30, 14 $ Change % Change
75,750.00 0.00 75,750.00 100.0%
34,591.88 0.00 34,591.88 100.0%
25,559.00 64,998.00 (39,439.00) (60.68%)
60,150.88 64,998.00 (4,847.12) (7.46%)
23300 • VNB Inc - Intercompany AP
73,754.71
(56,133.72)
129,888.43
231.39%
23310 • NB&Co - Intercompany AP
24,756.07
45,901.93
(21,145.86)
(46.07%)
23500 • Deferred Rent
19,080.88
28,026.56
(8,945.68)
(31.92%)
Total 23000 • Other Current Liabilities
253,492.54
82,792.77
170,699.77
206.18%
Total Other Current Liabilities
Total Current Liabilities
Total Liabilities
Equity
30000 • Equity
31100 • General Fund Balance
31500 • Designated Net Assets
Total 30000 • Equity
Net Income
Total Equity
253,492.54 82,792.77 170,699.77 206.18%
304,698.68 181,084.62 123,614.06 68.26%
304,698.68 181,084.62 123,614.06 68.26%
(42,693.66) 22,414.13 (65,107.79) (290.48%)
0.00 6,000.00 (6,000.00) (100.0%)
(42,693.66) 28,414.13 (71,107.79) (250.26%)
263,309.14 432,014.65 (168,705.51) (39.05%)
220,615.48 460,428.78 (239,813.30) (52.09%)
TOTAL LIABILITIES & EQUITY 525,314.16 641,513.40 (116,199.24) (18.11%)
TBID Visit Newport Beach Inc.
Statement of Cash Flows
July through September 2015
Jul - Sep 15
OPERATING ACTIVITIES
Net Income
263,309.14
Adjustments to reconcile Net Income
to net cash provided by operations:
13200 Prepaid Expenses
(63,504.45)
13310 NB&Co - Intercompany AR
29,950.51
21200 Accounts Payable - TBID
(179,754.62)
22100 American Express Corporate
(18,072.79)
23100 Accrued Expenses
(13,972.33)
23110 Accrued Payroll
(88,657.40)
23300 VNB Inc - Intercompany AP
73,462.13
23310 NB&Co - Intercompany AP
24,756.07
Net cash provided by Operating Activities
27,516.26
INVESTING ACTIVITIES
14110 • Accum. Deprec.- Leasehold
1,933.90
14210 • Accum. Deprec. - Office Furn.
5,535.58
14310 • Accum. Deprec. - Computer
415.26
Net cash provided by Investing Activities
7,884.74
FINANCING ACTIVITIES
31100 • General Fund Balance
(70,716.79)
32000 • Unrestricted Net Assets
70,716.79
Net cash provided by Financing Activities
0.00
Net cash increase for period 35,401.00
Cash at beginning of period 103,935.62
Cash at end of period 139,336.62
TBID Visit Newport Beach Inc.
Check Detail
July through September 2015
Type
Num
Date
Name
Account
Paid Amount
Bill Pmt -Check
ACH
07/09/2015
Verizon Wireless
11205 • Checking - Union Bank
Bill
9747487342
07/01/2015
64135 Telephone - Mobile
(405.37)
13310 NB&Co - Intercompany AR
(757.93)
64115 Office Equipment (non-d...
(191.98)
TOTAL
(1,355.28)
Check
PPE070415
07/13/2015
MassMutual Retirement
11205 • Checking - Union Bank
23220 Payroll Liabilities - 401k
(2,023.50)
23220 Payroll Liabilities - 401k
(138.10)
61140 Retirement Plan (401k)
(699.99)
61140 Retirement Plan (401k)
(3,082.80)
TOTAL
(5,944.39)
Check
PPE071815
07/13/2015
MassMutual Retirement
11205 Checking - Union Bank
23220 Payroll Liabilities - 401k
(2,052.59)
23220 Payroll Liabilities - 401k
(141.69)
61140 Retirement Plan (401k)
(719.13)
61140 Retirement Plan (401k)
(709.34)
TOTAL
(3,622.75)
Bill Pmt -Check
ACH
07/21/2015
Xerox Financial Services
11205 • Checking - Union Bank
Bill
339510
06/30/2015
64110 Office Equipment Leases
(247.54)
TOTAL
(247.54)
Check
ACH
07/23/2015
American Express
11205 • Checking - Union Bank
22100 American Express Corpor...
(41,868.31)
TOTAL
(41,868.31)
Bill Pmt -Check
50726498
07/27/2015
B. toffee
11205 • Checking - Union Bank
Type
Num
Date
Name
Account
Paid Amount
Bill
4216
06/11/2015
66123 Client Gifts
(205.03)
TOTAL
(205.03)
Bill Pmt -Check
5476
07/27/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
DestCA0515
06/05/2015
66248 Group Marketing Initiativ...
(8,683.06)
TOTAL
(8,683.06)
Bill Pmt -Check
5475
07/27/2015
Best Chauffeured Worldwide
11205 • Checking - Union Bank
Bill
700929
06/09/2015
66231 Group Booking Incentives
(102.00)
Bill
700931
06/09/2015
66231 Group Booking Incentives
(102.00)
Bill
700930
06/10/2015
66231 Group Booking Incentives
(96.00)
Bill
702084
06/11/2015
66202 Site Inspections
(126.00)
Bill
700554
06/18/2015
66202 Site Inspections
(120.00)
TOTAL
(546.00)
Bill Pmt -Check
5477
07/27/2015
Collinson Media & Events
11205 • Checking - Union Bank
Bill
31144
06/01/2015
66100 Meetings Advertising
(4,000.00)
TOTAL
(4,000.00)
Bill Pmt -Check
5478
07/27/2015
Conference Direct
11205 • Checking - Union Bank
Bill
CDI15508
06/01/2015
66222 Registration
(3,000.00)
TOTAL
(3,000.00)
Bill Pmt -Check
5479
07/27/2015
Desert Publications Inc.
11205 • Checking - Union Bank
Bill
41750
06/01/2015
66102 Production
(109.00)
Bill
41755
06/01/2015
66102 • Production
(610.40)
TOTAL
(719.40)
Type
Num
Date
Name
Account
Paid Amount
Bill Pmt -Check
5480
07/27/201S
Ed Smith
11205 Checking - Union Bank
Bill
COnfDirec0615
06/15/2015
66248 Group Marketing Initiativ...
(1,472.80)
TOTAL
(1,472.80)
Bill Pmt -Check
5481
07/27/201S
Fairmont Newport Beach
11205 Checking - Union Bank
Bill
SITE Poker 0615
06/15/2015
66248 Group Marketing Initiativ...
(15,000.00)
TOTAL
(15,000.00)
Bill Pmt -Check
5482
07/27/201S
HPN Global
11205 • Checking - Union Bank
Bill
201SO61702
06/17/2015
13200 Prepaid Expenses
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5483
07/27/201S
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
25317
06/12/2015
66248 Group Marketing Initiativ...
(6,975.00)
TOTAL
(6,975.00)
Bill Pmt -Check
5500
07/27/201S
Igor Len
11205 Checking - Union Bank
Bill
2222
06/29/2015
66102 Production
(2,000.00)
TOTAL
(2,000.00)
Bill Pmt -Check
5484
07/27/201S
Image Source
11205 • Checking - Union Bank
Bill
340255
06/16/2015
64100 Office Supplies
(71.88)
TOTAL
(71.88)
Bill Pmt -Check
5486
07/27/201S
Kim Kelley Productions
11205 Checking - Union Bank
Bill
0210
06/30/2015
67004 Marketing Consultants
(5,580.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(5,580.00)
Bill Pmt -Check
5498
07/27/2015
Marinella Len Verve Network
11205 • Checking - Union Bank
Bill
0576
06/10/2015
66102 Production
(357.50)
TOTAL
(357.50)
Bill Pmt -Check
5487
07/27/2015
Marriott Bayview
11205 • Checking - Union Bank
Bill
6012015
06/01/2015
66248 Group Marketing Initiativ...
(1,787.82)
TOTAL
(1,787.82)
Bill Pmt -Check
5488
07/27/2015
Master Connection Associates
11205 Checking - Union Bank
Bill
30737
06/01/2015
66247 Partner Engagement Exp...
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
5490
07/27/2015
Nell Nicholas
11205 • Checking - Union Bank
Bill
Nicholas0715
07/16/2015
66202 Site Inspections
(692.20)
TOTAL
(692.20)
Bill Pmt -Check
5489
07/27/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
040915FAM
06/01/2015
66248 Group Marketing Initiativ...
(2,676.09)
TOTAL
(2,676.09)
Bill Pmt -Check
5491
07/27/2015
Newport Dunes Waterfront Resor...
11205 • Checking - Union Bank
Bill
E19739
06/09/2015
66248 Group Marketing Initiativ...
(4,500.00)
TOTAL
(4,500.00)
Bill Pmt -Check
5492
07/27/2015
Noble Studios
11205 • Checking - Union Bank
Type
Num
Date
Name
Account
Paid Amount
Bill
15644
06/30/2015
66205 Database/Prospecting
(2,475.00)
TOTAL
(2,475.00)
Bill Pmt -Check
5495
07/27/2015
Performance Solutions Group
11205 Checking - Union Bank
Bill
4127
06/25/2015
64500 Other Operating Expense
(900.00)
TOTAL
(900.00)
Bill Pmt -Check
5493
07/27/2015
Premiere Displays & Exhibits
11205 • Checking - Union Bank
Bill
5106381
06/09/2015
66223 Booth Expenses
(7,481.08)
Bill
5106244
06/30/2015
66223 Booth Expenses
(656.04)
Bill
5106375
06/30/2015
66223 Booth Expenses
(4,166.09)
Bill
5107131
06/30/2015
66223 Booth Expenses
(979.20)
TOTAL
(13,282.41)
Bill Pmt -Check
5494
07/27/201S
Prestige Concepts Promotion & E...
11205 Checking - Union Bank
Bill
3203
07/14/2015
66123 Client Gifts
(1,158.14)
TOTAL
(1,158.14)
Bill Pmt -Check
5496
07/27/2015
Radisson Hotel Newport Beach
11205 Checking - Union Bank
Bill
53115
06/29/2015
66243 Booking Incentives
(22,857.72)
TOTAL
(22,857.72)
Bill Pmt -Check
5497
07/27/2015
Smith & Surrency Digital Marketi...
11205 Checking - Union Bank
Bill
1194
07/01/2015
67004 Marketing Consultants
(2,750.00)
TOTAL
(2,750.00)
Bill Pmt -Check
5501
07/27/2015
Stamats (Meetings Focus)
11205 Checking - Union Bank
Type Num Date Name Account Paid Amount
Bill
60401209
06/01/2015
TOTAL
Bill Pmt -Check
5485
07/27/2015
Island Hotel
Bill
EUCI-0615
06/12/2015
TOTAL
Bill Pmt -Check
5499
07/27/2015
Wendy Dougan
Bill
201515
06/22/2015
TOTAL
Bill Pmt -Check
5502
08/03/2015
Blue Shield of California
Bill
151970005119
08/01/2015
TOTAL
Bill Pmt -Check
5504
08/03/2015
The Irvine Company, LLC
Bill
August 2015
08/01/2015
TOTAL
Bill Pmt -Check
53738976
08/04/2015
Co Power
Bill
508856
08/01/2015
TOTAL
Bill Pmt -Check
5505
08/07/2015
ACA Compliance Group
Bill
ACACom-Parsons0715
07/22/2015
66100 Meetings Advertising
(562.50)
66100 Meetings Advertising
(2,000.00)
(2,562.50)
11205 • Checking - Union Bank
66243 Booking Incentives
(2,500.00)
(2,500.00)
11205 • Checking - Union Bank
66102 Production
(3,750.00)
(3,750.00)
11205 • Checking - Union Bank
61110 Medical Insurance
(4,866.20)
(4,866.20)
11205 • Checking - Union Bank
62100 Lease
(7,632.00)
(7,632.00)
11205 • Checking - Union Bank
61125 Vision Insurance
(62.70)
61120 Dental Insurance
(531.80)
(594.50)
11205 • Checking - Union Bank
66202 Site Inspections
(714.20)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(714.20)
Bill Pmt -Check
5506
08/07/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
DestCA0615
06/08/2015
66248 Group Marketing Initiativ...
(8,900.00)
66248 Group Marketing Initiativ...
(7,000.00)
TOTAL
(15,900.00)
Bill Pmt -Check
5507
08/07/2015
Cvent, Inc.
11205 Checking - Union Bank
Bill
168564
07/09/2015
66205 Database/Prospecting
(2,260.37)
13200 Prepaid Expenses
(24,863.63)
TOTAL
(27,124.00)
Bill Pmt -Check
5508
08/07/2015
Image Source
11205 • Checking - Union Bank
Bill
348996
07/16/2015
64100 Office Supplies
(108.39)
TOTAL
(108.39)
Bill Pmt -Check
5510
08/07/2015
Marriott Bayview
11205 • Checking - Union Bank
Bill
103
06/02/2015
66248 Group Marketing Initiativ...
(1,900.00)
Bill
104
06/04/2015
66248 Group Marketing Initiativ...
(1,900.00)
TOTAL
(3,800.00)
Bill Pmt -Check
5511
08/07/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
AlbanyState1215
06/01/2015
66243 Booking Incentives
(6,500.00)
TOTAL
(6,500.00)
Bill Pmt -Check
5509
08/07/2015
Island Hotel
11205 Checking - Union Bank
Bill
PDSInst-0615
06/15/2015
66243 Booking Incentives
(2,500.00)
Type Num Date Name Account Paid Amount
TOTAL
Bill Pmt -Check
5512
08/07/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
HyundaiSvcMgrs0615
06/24/2015
66243 Booking Incentives
TOTAL
Bill Pmt -Check
5513
08/07/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
062315
06/23/2015
66248 Group Marketing Initiativ...
66248 Group Marketing Initiativ...
TOTAL
Bill Pmt -Check
995514
08/07/2015
HelmsBriscoe Performance Grou...
11205 Checking - Union Bank
Bill
HBC09MN2015
07/31/2015
66225 Sponsorship
TOTAL
Bill Pmt -Check
5515
08/07/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
25676
06/25/2015
66248 Group Marketing Initiativ...
Bill
25628
06/29/2015
66248 Group Marketing Initiativ...
TOTAL
Bill Pmt -Check
5517
08/07/2015
Kim Kelley Productions
11205 • Checking - Union Bank
Bill
0218
07/31/2015
67004 Marketing Consultants
TOTAL
Bill Pmt -Check
5518
08/07/2015
Lauren Sherwin
11205 Checking - Union Bank
Bill
Data Entry06-07/15
07/30/2015
66205 Database/Prospecting
TOTAL
(2,500.00)
(5,000.00)
(5,000.00)
(2,300.00)
(725.00)
(3,025.00)
(3,500.00)
(3,500.00)
(1,172.92)
(1,806.66)
(2,979.58)
(6,120.00)
(6,120.00)
(315.00)
(315.00)
Type
Num
Date
Name
Account
Paid Amount
Bill Pmt -Check
5519
08/07/2015
Marriott Bayview
11205 • Checking - Union Bank
Bill
05212015
06/01/2015
66248 Group Marketing Initiativ...
(700.00)
TOTAL
(700.00)
Bill Pmt -Check
5520
08/07/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
USWomSocc05/15
06/01/2015
66243 Booking Incentives
(2,400.00)
TOTAL
(2,400.00)
Bill Pmt -Check
5516
08/07/2015
Island Hotel
11205 • Checking - Union Bank
Bill
Youthcue-0116
06/23/2015
66243 Booking Incentives
(1,000.00)
TOTAL
(1,000.00)
Check
PPE080115
08/10/2015
MassMutual Retirement
11205 • Checking - Union Bank
23220 Payroll Liabilities - 401k
(2,052.59)
23220 Payroll Liabilities - 401k
(141.69)
61140 Retirement Plan (401k)
(719.13)
61140 Retirement Plan (401k)
(709.35)
TOTAL
(3,622.76)
Bill Pmt -Check
ACH
08/11/2015
Verizon Wireless
11205 Checking - Union Bank
Bill
9749154445
08/01/2015
64135 Telephone - Mobile
(550.10)
64115 Office Equipment (non-d...
(313.09)
13310 NB&Co - Intercompany AR
(477.88)
TOTAL
(1,341.07)
Check
TRNSFR
08/18/2015
Visit Newport Beach Inc.
11205 Checking - Union Bank
13300 VNB Inc - Intercompany ...
(31,250.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(31,250.00)
Check
TRNSFR
O8/18/2015
Visit Newport Beach Inc.
11215 • Money Market - Union ...
13300 VNB Inc - Intercompany ...
(4,500.00)
TOTAL
(4,500.00)
Check
TRNSFR
08/18/2015
Newport Beach & Company
11215 • Money Market - Union ...
13310 NB&Co - Intercompany AR
(15,000.00)
TOTAL
(15,000.00)
Bill Pmt -Check
ACH
08/20/2015
Xerox Financial Services
11205 Checking - Union Bank
Bill
355129
07/31/2015
64110 Office Equipment Leases
(247.54)
TOTAL
(247.54)
Bill Pmt -Check
58388025
08/21/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
Olukai-0615
07/30/2015
66231 Group Booking Incentives
(5,581.68)
TOTAL
(5,581.68)
Bill Pmt -Check
58388094
08/21/2015
Best Chauffeured Worldwide
11205 • Checking - Union Bank
Bill
706116
07/16/2015
66244 Client Events/Relations
(688.51)
TOTAL
(688.51)
Bill Pmt -Check
5523
08/21/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
062215-FrankCov
06/25/2015
66248 Group Marketing Initiativ...
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5524
08/21/2015
HelmsBriscoe Performance Grou...
11205 • Checking - Union Bank
Type
Num
Date
Name
Account
Paid Amount
Bill
07302015
07/30/2015
66234 Industry Sponsorships
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5525
08/21/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
25519
06/25/2015
66248 Group Marketing Initiativ...
(1,172.92)
TOTAL
(1,172.92)
Bill Pmt -Check
5526
08/21/2015
Island Hotel
11205 • Checking - Union Bank
Bill
12thWomPedDer0615
06/25/2015
66243 Booking Incentives
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5527
08/21/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
VerizonWireless0615
06/23/2015
66243 Booking Incentives
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5528
08/21/2015
Smart Meetings
11205 • Checking - Union Bank
Bill
1015019631
07/28/2015
13200 Prepaid Expenses
(5,500.00)
TOTAL
(5,500.00)
Bill Pmt -Check
5529
08/21/2015
Strategic Database Research
11205 • Checking - Union Bank
Bill
4668
06/26/2015
66205 Database/Prospecting
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
5530
08/21/2015
US Travel Association
11205 Checking - Union Bank
Bill
67742
07/06/2015
13200 Prepaid Expenses
(10,781.25)
64160 Membership Dues
(2,192.25)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(12,973.50)
Bill Pmt -Check
5531
08/21/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
EngageSummit0715
07/01/2015
66231 Group Booking Incentives
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5532
08/21/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
BasCours eAllImm0715
07/01/2015
66231 Group Booking Incentives
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
5533
08/21/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
FergEnt 0715
06/29/2015
66243 Booking Incentives
(300.00)
TOTAL
(300.00)
Bill Pmt -Check
5534
08/21/2015
Island Hotel
11205 • Checking - Union Bank
Bill
DrFuhrmanGetaway0715
07/01/2015
66231 Group Booking Incentives
(6,000.00)
TOTAL
(6,000.00)
Bill Pmt -Check
5535
08/21/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
06242015
06/24/2015
66248 Group Marketing Initiativ...
(1,058.00)
TOTAL
(1,058.00)
Check
ACH
08/21/2015
American Express
11205 • Checking - Union Bank
22100 American Express Corpor...
(57,900.82)
TOTAL
(57,900.82)
Check
0062012643
08/24/2015
Amanda Kliem*
11205 • Checking - Union Bank
Type
TOTAL
Num
Bill Pmt -Check 5539
Bill ICCASAC0516
TOTAL
Bill Pmt -Check 5540
Bill PearsonLearn0715
TOTAL
Bill Pmt -Check 5541
Bill ECO2016 0116
TOTAL
Date
Name
08/25/2015 Balboa Bay Resort
06/30/2015
08/25/2015 Fairmont Newport Beach
07/01/2015
08/25/2015 Hyatt Regency Newport Beach
06/01/2015
Account
Paid Amount
66223 Booth Expenses
(9.54)
66221 Travel Expenses
(40.00)
66221 Travel Expenses
(18.36)
64600 Business Meals/Entertai...
(100.00)
66221 Travel Expenses
(8.95)
66221 Travel Expenses
(65.00)
66221 Travel Expenses
(12.02)
66221 Travel Expenses
(32.00)
66221 Travel Expenses
(21.50)
66221 Travel Expenses
(21.58)
66221 Travel Expenses
(35.57)
66221 Travel Expenses
(26.60)
66221 Travel Expenses
(19.04)
66221 Travel Expenses
(43.00)
66221 Travel Expenses
(43.20)
66221 Travel Expenses
(425.58)
66221 Travel Expenses
(10.00)
66221 Travel Expenses
(1,305.30)
(2,237.24)
11205 • Checking - Union Bank
66243 Booking Incentives
(1,000.00)
(1,000.00)
11205 • Checking - Union Bank
66231 Group Booking Incentives
(1,500.00)
(1,500.00)
11205 • Checking - Union Bank
66243 Booking Incentives
(1,000.00)
(1,000.00)
Type
Num
Date
Name
Account
Paid Amount
Bill Pmt -Check
SS42
08/2S/201S
Island Hotel
1120S Checking - Union Bank
Bill
SummitAesthMed0616
06/24/2015
66243 Booking Incentives
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
SS43
08/2S/201S
Newport Beach Marriott Hotel & S...
1120S • Checking - Union Bank
Bill
ChrLegalSoclO/17
06/01/2015
66243 Booking Incentives
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
SS44
08/2S/201S
Balboa Bay Resort
1120S • Checking - Union Bank
Bill
CCDAA Great0715
07/01/2015
66231 Group Booking Incentives
(300.00)
TOTAL
(300.00)
Bill Pmt -Check
SS4S
08/2S/201S
Fairmont Newport Beach
1120S Checking - Union Bank
Bill
NatPharm&Thera0815
07/01/2015
13200 Prepaid Expenses
(175.00)
TOTAL
(175.00)
Bill Pmt -Check
SS46
08/2S/201S
Hyatt Regency Newport Beach
1120S Checking - Union Bank
Bill
SennDelaney07/15
06/29/2015
66243 Booking Incentives
(500.00)
TOTAL
(500.00)
Bill Pmt -Check
SS47
08/2S/201S
Island Hotel
1120S Checking - Union Bank
Bill
KerrRoundTable0815
06/30/2015
66243 Booking Incentives
(1,884.75)
TOTAL
(1,884.75)
Bill Pmt -Check
SS48
08/2S/201S
Newport Beach Marriott Hotel & S...
1120S • Checking - Union Bank
Bill
AmerSocforMohsO5/16
06/01/2015
66243 Booking Incentives
(5,000.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(5,000.00)
Bill Pmt -Check
082515PAY
08/25/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
1980206
07/08/2015
66248 Group Marketing Initiativ...
(468.00)
TOTAL
(468.00)
Bill Pmt -Check
5549
08/25/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Biotronik0815
06/30/2015
66243 Booking Incentives
(600.00)
TOTAL
(600.00)
Bill Pmt -Check
5551
08/25/2015
Island Hotel
11205 Checking - Union Bank
Bill
AmerTours1215
06/30/2015
66243 Booking Incentives
(1,600.00)
TOTAL
(1,600.00)
Bill Pmt -Check
5552
08/25/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
Oley Found07/16
06/01/2015
66243 Booking Incentives
(6,500.00)
TOTAL
(6,500.00)
Bill Pmt -Check
5550
08/25/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
BoeingCAS&GSS0715
07/09/2015
66243 Booking Incentives
(468.00)
TOTAL
(468.00)
Bill Pmt -Check
5554
08/25/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
First Quality0715
06/30/2015
66243 Booking Incentives
(450.00)
TOTAL
(450.00)
Bill Pmt -Check
5555
08/25/2015
Island Hotel
11205 • Checking - Union Bank
Type
Num
Date
Name
Account
Paid Amount
Bill
H1thNetBrokerSum0315
07/01/2015
66243 Booking Incentives
(600.00)
TOTAL
(600.00)
Bill Pmt -Check
5556
08/25/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
07202015
07/20/2015
66248 Group Marketing Initiativ...
(500.00)
TOTAL
(500.00)
Bill Pmt -Check
5557
08/25/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
PacDenta10715
07/14/2015
66243 Booking Incentives
(925.00)
TOTAL
(925.00)
Bill Pmt -Check
5558
08/25/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
6545783201Hawkins
07/01/2015
66248 Group Marketing Initiativ...
(281.54)
TOTAL
(281.54)
Bill Pmt -Check
5559
08/25/2015
Island Hotel
11205 • Checking - Union Bank
Bill
Matte10815
07/01/2015
13200 Prepaid Expenses
(1,500.00)
TOTAL
(1,500.00)
Bill Pmt -Check
5560
08/25/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
The Flavor Exp 0715
07/01/2015
66231 Group Booking Incentives
(3,000.00)
TOTAL
(3,000.00)
Bill Pmt -Check
5561
08/25/2015
Fairmont Newport Beach
11205 Checking - Union Bank
Bill
UCIPhysSci0815
07/14/2015
66243 Booking Incentives
(500.00)
TOTAL
(500.00)
Type
Num
Date
Name
Account
Paid Amount
Bill Pmt -Check
5562
08/25/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Climatec0815
06/30/2015
66243 Booking Incentives
(350.00)
TOTAL
(350.00)
Bill Pmt -Check
5563
08/25/2015
Island Hotel
11205 • Checking - Union Bank
Bill
BostonSci0715
07/29/2015
66243 Booking Incentives
(200.00)
TOTAL
(200.00)
Bill Pmt -Check
5564
08/25/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
07242015
07/24/2015
66248 Group Marketing Initiativ...
(2,100.00)
TOTAL
(2,100.00)
Bill Pmt -Check
5565
08/25/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
CGJungIns0316
07/14/2015
66243 Booking Incentives
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5567
08/25/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
6545842001Mittskus
07/01/2015
66248 Group Marketing Initiativ...
(258.94)
TOTAL
(258.94)
Bill Pmt -Check
5566
08/25/2015
Island Hotel
11205 • Checking - Union Bank
Bill
FloridaPanthers
07/27/2015
66243 Booking Incentives
(573.60)
TOTAL
(573.60)
Bill Pmt -Check
5568
08/25/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
Pharma07202015
07/20/2015
66248 Group Marketing Initiativ...
(5,300.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(5,300.00)
Bill Pmt -Check
5569
08/25/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
ConfDirRelat0915
08/10/2015
13200 Prepaid Expenses
(500.00)
TOTAL
(500.00)
Bill Pmt -Check
5572
08/25/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
UnitedFoods0815
06/30/2015
66243 Booking Incentives
(350.00)
TOTAL
(350.00)
Bill Pmt -Check
5570
08/25/2015
Island Hotel
11205 Checking - Union Bank
Bill
DuncanGroup
08/03/2015
66243 Booking Incentives
(500.00)
TOTAL
(500.00)
Bill Pmt -Check
5571
08/25/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
NatColBlkMtgPlan1115
06/23/2015
66243 Booking Incentives
(5,040.00)
TOTAL
(5,040.00)
Check
PPE081515
08/27/2015
MassMutual Retirement
11205 • Checking - Union Bank
23220 Payroll Liabilities - 401k
(2,052.59)
23220 Payroll Liabilities - 401k
(141.69)
61140 Retirement Plan (401k)
(719.13)
61140 Retirement Plan (401k)
(709.36)
TOTAL
(3,622.77)
Bill Pmt -Check
5538
08/28/2015
The Irvine Company, LLC
11205 Checking - Union Bank
Bill
September 2015
09/01/2015
62100 Lease
(7,632.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(7,632.00)
Bill Pmt -Check
5537
08/31/2015
Blue Shield of California
11205 • Checking - Union Bank
Bill
152260004318
09/01/2015
61110 Medical Insurance
(4,866.20)
TOTAL
(4,866.20)
Check
08/31/2015
11205 • Checking - Union Bank
64150 Bank Fees
(10.00)
TOTAL
(10.00)
Bill Pmt -Check
5573
09/01/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
MtgSiteSt.Joseph0915
08/10/2015
13200 Prepaid Expenses
(350.00)
TOTAL
(350.00)
Bill Pmt -Check
5574
09/01/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
CASH Fall Conf 10/15
07/14/2015
66243 Booking Incentives
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5575
09/01/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
2015GMLeadership0715
07/01/2015
66231 Group Booking Incentives
(400.00)
TOTAL
(400.00)
Bill Pmt -Check
5576
09/01/2015
Island Hotel
11205 • Checking - Union Bank
Bill
AMEREICANTOU091720...
07/01/2015
66243 Booking Incentives
(1,600.00)
TOTAL
(1,600.00)
Bill Pmt -Check
5577
09/01/2015
Kate Houlihan Photography
11205 • Checking - Union Bank
Type Num Date Name Account Paid Amount
Bill
12
08/07/2015
66206 Conference Services
TOTAL
Bill Pmt -Check
5578
09/01/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
Sytar2017
06/23/2015
66243 Booking Incentives
TOTAL
Bill Pmt -Check
5579
09/01/2015
Prestige Concepts Promotion & E...
11205 • Checking - Union Bank
Bill
3194
07/01/2015
66123 Client Gifts
Bill
3192
07/31/2015
64101 • Stationary
Bill
3251
08/14/2015
66123 Client Gifts
TOTAL
Bill Pmt -Check
5583
09/01/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Bill
UCI2014-2015
07/27/2015
66248 Group Marketing Initiativ...
TOTAL
Bill Pmt -Check
5581
09/01/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
SocMathPsych0715
07/01/2015
66231 Group Booking Incentives
TOTAL
Bill Pmt -Check
5580
09/01/2015
Island Hotel
11205 • Checking - Union Bank
Bill
DynamicHealthNet0915
08/10/2015
13200 Prepaid Expenses
TOTAL
Bill Pmt -Check
5582
09/01/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
07312015
07/31/2015
66248 Group Marketing Initiativ...
(329.40)
(329.40)
(7,500.00)
(7,500.00)
(386.25)
(3,703.60)
(7,325.95)
(11,415.80)
(3,000.00)
(3,000.00)
(700.00)
(700.00)
(700.00)
(700.00)
(9,000.00)
Type Num Date Name Account Paid Amount
TOTAL
Bill Pmt -Check
5584
Bill
1977713
TOTAL
Bill Pmt -Check
5585
Bill
CityMgrsExec0815
TOTAL
Bill Pmt -Check
5586
Bill
JacobsEng0615
TOTAL
Bill Pmt -Check
5587
Bill
08032015
TOTAL
Bill Pmt -Check
5588
Bill
Amplify0915
TOTAL
Bill Pmt -Check
5589
Bill
TJX BuyerMM0915
TOTAL
Bill Pmt -Check
5594
09/01/2015 Fairmont Newport Beach 11205 • Checking - Union Bank
07/28/2015 66248 Group Marketing Initiativ...
09/01/2015 Hyatt Regency Newport Beach 11205 • Checking - Union Bank
07/01/2015 13200 Prepaid Expenses
09/01/2015 Island Hotel 11205 Checking - Union Bank
08/04/2015 66231 Group Booking Incentives
09/01/2015 Newport Beach Marriott Hotel & 5... 11205 • Checking - Union Bank
08/03/2015 66248 • Group Marketing Initiativ...
09/01/2015 Hyatt Regency Newport Beach 11205 • Checking - Union Bank
07/07/2015 66243 Booking Incentives
09/01/2015 Island Hotel 11205 • Checking - Union Bank
08/10/2015 13200 Prepaid Expenses
09/01/2015 Newport Beach Marriott Hotel & S... 11205 • Checking - Union Bank
(9,000.00)
(1,500.00)
(1,500.00)
(100.00)
(100.00)
(12,887.00)
(12,887.00)
(1,625.00)
(1,625.00)
(1,000.00)
(1,000.00)
(2,500.00)
(2,500.00)
Type
Num
Date
Name
Account
Paid Amount
Bill
ActavisMtg0815
08/03/2015
66231 Group Booking Incentives
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5591
09/01/2015
Fairmont Newport Beach
11205 Checking - Union Bank
Bill
Kaiser16thAnn0915
08/10/2015
13200 Prepaid Expenses
(400.00)
TOTAL
(400.00)
Bill Pmt -Check
5593
09/01/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Omniupdate0315
08/03/2015
66231 Group Booking Incentives
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5592
09/01/2015
Island Hotel
11205 • Checking - Union Bank
Bill
ProfHousing0315
08/03/2015
66231 Group Booking Incentives
(400.00)
TOTAL
(400.00)
Bill Pmt -Check
5590
09/01/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
Actavis-Booking0815
08/03/2015
66243 Booking Incentives
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5595
09/01/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
26thCRCOnRoad0415
07/01/2015
66243 Booking Incentives
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
5596
09/01/2015
Island Hotel
11205 Checking - Union Bank
Bill
CAChildHosp0915
08/10/2015
13200 Prepaid Expenses
(500.00)
TOTAL
(500.00)
Type
Num
Date
Name
Account
Paid Amount
Bill Pmt -Check
5597
09/01/2015
Marriott Bayview
11205 • Checking - Union Bank
Bill
ZimmerBiomet
08/17/2015
66243 Booking Incentives
(500.00)
TOTAL
(500.00)
Bill Pmt -Check
5598
09/01/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
VisionSolu0715
08/04/2015
66243 Booking Incentives
(900.00)
TOTAL
(900.00)
Bill Pmt -Check
5536
09/01/2015
Co Power
11205 • Checking - Union Bank
Bill
515401
09/01/2015
61125 Vision Insurance
(62.70)
61120 Dental Insurance
(531.80)
TOTAL
(594.50)
Bill Pmt -Check
5601
09/02/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
HBMA20150315
08/04/2015
66243 Booking Incentives
(1,000.00)
TOTAL
(1,000.00)
Bill Pmt -Check
5603
09/02/2015
Island Hotel
11205 Checking - Union Bank
Bill
LatinAmerica
08/20/2015
66243 Booking Incentives
(1,661.55)
TOTAL
(1,661.55)
Bill Pmt -Check
5600
09/02/2015
Kim Kelley Productions
11205 Checking - Union Bank
Bill
0221
08/15/2015
67004 Marketing Consultants
(2,700.00)
TOTAL
(2,700.00)
Bill Pmt -Check
5602
09/02/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Type Num Date Name Account Paid Amount
Bill
HUMANA07272015
08/05/2015
66231 Group Booking Incentives
TOTAL
Bill Pmt -Check
5604
09/02/2015
Fairmont Newport Beach
11205 Checking - Union Bank
Bill
Toshiba082015
08/24/2015
66231 Group Booking Incentives
TOTAL
Bill Pmt -Check
5605
09/02/201S
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
6645934101Jacobson
07/24/2015
66248 Group Marketing Initiativ...
TOTAL
Bill Pmt -Check
5606
09/02/2015
Island Hotel
11205 Checking - Union Bank
Bill
NGKSpark0315
08/03/2015
66243 Booking Incentives
TOTAL
Bill Pmt -Check
5607
09/02/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
TOSHIBA07062015
08/06/2015
66231 Group Booking Incentives
TOTAL
Bill Pmt -Check
5608
09/02/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
Merage0916
07/07/2015
66243 Booking Incentives
Bill
UCIPaulMerage 0916
07/07/2015
66243 Booking Incentives
Bill
UCIPaulMerage091516
07/10/2015
66243 Booking Incentives
Bill
UCIPaulMerage091016
07/10/2015
66243 Booking Incentives
TOTAL
Bill Pmt -Check
5609
09/02/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
Pfiefer08112015
08/10/2015
66243 Booking Incentives
(1,300.00)
(1,300.00)
(230.91)
(230.91)
(1,067.34)
(1,067.34)
(9,490.00)
(9,490.00)
(3,000.00)
(3,000.00)
(1,400.00)
(1,400.00)
(1,400.00)
(1,400.00)
(5,600.00)
(1,500.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(1,500.00)
Bill Pmt -Check
ACH
09/07/2015
Verizon Wireless
11205 • Checking - Union Bank
Bill
9750812932
09/01/2015
64135 Telephone - Mobile
(566.65)
13310 NB&Co - Intercompany AR
(550.32)
TOTAL
(1,116.97)
Check
PPE082915
09/08/2015
MassMutual Retirement
11205 Checking - Union Bank
23220 Payroll Liabilities - 401k
(2,052.59)
23220 Payroll Liabilities - 401k
(141.69)
61140 Retirement Plan (401k)
(719.13)
61140 Retirement Plan (401k)
(709.35)
TOTAL
(3,622.76)
Bill Pmt -Check
0062001819
09/17/2015
Lauren Sherwin
11205 • Checking - Union Bank
Bill
08232015
08/23/2015
66205 Database/Prospecting
(450.00)
Bill
09142015
09/14/2015
66205 Database/Prospecting
(540.00)
TOTAL
(990.00)
Bill Pmt -Check
ACH
09/21/2015
Xerox Financial Services
11205 Checking - Union Bank
Bill
371577
08/31/2015
64110 Office Equipment Leases
(247.54)
TOTAL
(247.54)
Check
PPE091215
09/21/2015
MassMutual Retirement
11205 Checking - Union Bank
23220 Payroll Liabilities - 401k
(2,052.59)
23220 Payroll Liabilities - 401k
(141.69)
61140 Retirement Plan (401k)
(719.13)
61140 Retirement Plan (401k)
(709.35)
TOTAL
(3,622.76)
Type Num Date Name Account Paid Amount
Bill Pmt -Check
5610
09/22/2015
B. toffee
11205 • Checking - Union Bank
Bill
4277
08/01/2015
66123 Client Gifts
TOTAL
Bill Pmt -Check
5611
09/22/2015
Balboa Bay Resort
11205 • Checking - Union Bank
Bill
VERIFACTS0216
08/27/2015
66243 Booking Incentives
TOTAL
Bill Pmt -Check
5612
09/22/2015
Best Chauffeured Worldwide
11205 • Checking - Union Bank
Bill
708710
07/28/2015
66202 Site Inspections
Bill
710083
08/18/2015
64170 Team Meetings
Bill
709849
08/20/2015
66206 Conference Services
Bill
711752
08/20/2015
66202 Site Inspections
Bill
237155128
08/25/2015
66206 Conference Services
TOTAL
Bill Pmt -Check
5613
09/22/2015
Desert Grafics
11205 • Checking - Union Bank
Bill
44087
08/27/2015
66102 Production
Bill
44088
08/27/2015
66102 • Production
Bill
44089
08/27/2015
66102 Production
TOTAL
Bill Pmt -Check
5628
09/22/2015
Tamara McGiboney
11205 • Checking - Union Bank
Bill
101
08/31/2015
66205 Database/Prospecting
TOTAL
Bill Pmt -Check
5614
09/22/2015
DMAI
11205 • Checking - Union Bank
Bill
INV-40138-N9G4GD
07/01/2015
66205 Database/Prospecting
(177.59)
(177.59)
(1,600.00)
(1,600.00)
(427.50)
(120.00)
(561.00)
(337.50)
(1,284.00)
(2,730.00)
(514.48)
(109.00)
(514.48)
(1,137.96)
(518.00)
(518.00)
(3,500.00)
Type Num Date Name Account Paid Amount
TOTAL
Bill Pmt -Check
5615
Bill
NASAA082015
TOTAL
Bill Pmt -Check
5616
Bill
HigherEduPo10816
TOTAL
Bill Pmt -Check
5617
Bill
357803
TOTAL
Bill Pmt -Check
5618
Bill
Univ of Cal Irvine
TOTAL
Bill Pmt -Check
5619
Bill
0224
TOTAL
Bill Pmt -Check
5620
Bill
0824201S
TOTAL
Bill Pmt -Check
5621
09/22/2015 Fairmont Newport Beach 11205 • Checking - Union Bank
08/18/2015 66248 Group Marketing Initiativ...
09/22/2015 Hyatt Regency Newport Beach 11205 • Checking - Union Bank
07/01/2015 13200 Prepaid Expenses
09/22/2015 Image Source 11205 Checking - Union Bank
08/14/2015 64100 Office Supplies
09/22/2015 Island Hotel 11205 • Checking - Union Bank
08/03/2015 66243 Booking Incentives
09/22/2015 Kim Kelley Productions 11205 • Checking - Union Bank
08/31/2015 67004 Marketing Consultants
09/22/2015 Newport Beach Marriott Hotel & 5... 11205 • Checking - Union Bank
08/24/2015 66248 • Group Marketing Initiativ...
09/22/2015 Premiere Displays & Exhibits 11205 • Checking - Union Bank
(3,500.00)
(2,975.00)
(2,975.00)
(4,000.00)
(4,000.00)
(117.36)
(117.36)
(315.00)
(315.00)
(2,760.00)
(2,760.00)
(9,000.00)
(9,000.00)
Type
Num
Date
Name
Account
Paid Amount
Bill
5107418-D1
08/27/2015
66223 Booth Expenses
(10,226.25)
TOTAL
(10,226.25)
Bill Pmt -Check
5622
09/22/2015
Prestige Concepts Promotion & E...
11205 Checking - Union Bank
Bill
3237
08/14/2015
66123 Client Gifts
(3,654.75)
Bill
3269-B
09/08/2015
64101 • Stationary
(167.40)
TOTAL
(3,822.15)
Bill Pmt -Check
5623
09/22/2015
SITE Foundation
11205 Checking - Union Bank
Bill
9883
08/O5/2015
13200 Prepaid Expenses
(6,000.00)
TOTAL
(6,000.00)
Bill Pmt -Check
5624
09/22/2015
Smith & Surrency Digital Marketi...
11205 Checking - Union Bank
Bill
1189
07/01/2015
67004 Marketing Consultants
(9,000.00)
Bill
1225
08/01/2015
67004 Marketing Consultants
(6,500.00)
Bill
1256
09/01/2015
67004 Marketing Consultants
(9,000.00)
TOTAL
(24,500.00)
Bill Pmt -Check
995625
09/22/2015
Strategic Database Research
11205 • Checking - Union Bank
Bill
4696
08/01/2015
66205 Database/Prospecting
(3,500.00)
Bill
4721
08/26/2015
66205 Database/Prospecting
(3,500.00)
TOTAL
(7,000.00)
Bill Pmt -Check
5626
09/22/2015
Successfactors
11205 • Checking - Union Bank
Bill
6750001214
09/03/2015
64125 Computer Software (non-...
(770.00)
TOTAL
(770.00)
Bill Pmt -Check
5627
09/22/2015
World Congress
11205 • Checking - Union Bank
Type Num Date Name Account Paid Amount
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
TOTAL
Bill Pmt -Check
Bill
Bill
Bill
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
201502162 06/30/2015
5629 09/22/2015 Balboa Bay Resort
Hyundai SMAC 1015 09/08/2015
092215PAY 09/22/2015 Fairmont Newport Beach
13200 Prepaid Expenses
11205 • Checking - Union Bank
13200 Prepaid Expenses
11205 • Checking - Union Bank
5631
09/22/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
24867
07/01/2015
66231 Group Booking Incentives
25892
07/08/2015
66248 Group Marketing Initiativ...
26658
08/05/2015
66248 Group Marketing Initiativ...
26659
08/05/2015
66248 Group Marketing Initiativ...
5632
09/22/2015
Island Hotel
11205 Checking - Union Bank
MossAdams0915
08/28/2015
66231 Group Booking Incentives
5633
09/22/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
KaiserPedEss0915
08/10/2015
13200 Prepaid Expenses
5634
09/22/2015
Fairmont Newport Beach
11205 • Checking - Union Bank
Fall Conf 1015
09/08/2015
13200 Prepaid Expenses
(32,500.00)
(32,500.00)
(2,500.00)
(2,500.00)
(7,500.00)
(861.84)
(363.24)
(750.00)
(9,475.08)
(1,000.00)
(1,000.00)
(1,600.00)
(1,600.00)
(750.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(750.00)
Bill Pmt -Check
5662
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
ToneItUp0915
08/10/2015
13200 Prepaid Expenses
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5636
09/22/2015
Island Hotel
11205 • Checking - Union Bank
Bill
ALPHAFUND2016
08/31/2015
66243 Booking Incentives
(733.72)
TOTAL
(733.72)
Bill Pmt -Check
5637
09/22/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
CentHealthCongr0915
08/10/2015
13200 Prepaid Expenses
(1,500.00)
TOTAL
(1,500.00)
Bill Pmt -Check
5638
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Helms0915
07/31/2015
66231 Group Booking Incentives
(540.00)
TOTAL
(540.00)
Bill Pmt -Check
5639
09/22/2015
Island Hotel
11205 • Checking - Union Bank
Bill
PPG Sales Meet 1015
09/08/2015
13200 Prepaid Expenses
(4,917.00)
TOTAL
(4,917.00)
Bill Pmt -Check
5650
09/22/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
MARKETINGRETRE081...
08/06/2015
66231 Group Booking Incentives
(1,500.00)
TOTAL
(1,500.00)
Bill Pmt -Check
5641
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Type
Num
Date
Name
Account
Paid Amount
Bill
ChabadIsrael
07/01/2015
66243 Booking Incentives
(100.00)
TOTAL
(100.00)
Bill Pmt -Check
5642
09/22/2015
Island Hotel
11205 Checking - Union Bank
Bill
0000002-A
09/10/2015
66248 Group Marketing Initiativ...
(6,122.08)
TOTAL
(6,122.08)
Bill Pmt -Check
5643
09/22/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
CalIntFedSec70915
08/10/2015
13200 Prepaid Expenses
(500.00)
TOTAL
(500.00)
Bill Pmt -Check
5644
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
CollegeWorks0116
07/07/2015
66243 Booking Incentives
(1,500.00)
TOTAL
(1,500.00)
Bill Pmt -Check
5645
09/22/2015
Newport Beach Marriott Hotel & S...
11205 • Checking - Union Bank
Bill
ElecWaveformLab1215
07/21/2015
66243 Booking Incentives
(1,200.00)
TOTAL
(1,200.00)
Bill Pmt -Check
5646
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Genesis1115
07/07/2015
66243 Booking Incentives
(1,000.00)
TOTAL
(1,000.00)
Bill Pmt -Check
5647
09/22/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
09012015
09/01/2015
66248 Group Marketing Initiativ...
(1,749.73)
TOTAL
(1,749.73)
Type Num Date Name Account Paid Amount
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
TOTAL
Bill Pmt -Check
Bill
5651 09/22/2015 Hyatt Regency Newport Beach 11205 • Checking - Union Bank
6655485201Nadkarni 07/28/2015 66248 Group Marketing Initiativ...
5649
Morris092015
5648
6655485202Beeaff
5640
Experian Conf 1015
5652
09012015TRILOGY
5653
CourtRepConv1015
09/22/2015 Newport Beach Marriott Hotel & S... 11205 • Checking - Union Bank
09/03/2015 66231 • Group Booking Incentives
09/22/2015 Hyatt Regency Newport Beach 11205 • Checking - Union Bank
07/28/2015 66248 Group Marketing Initiativ...
09/22/2015 Newport Beach Marriott Hotel & S... 11205 • Checking - Union Bank
09/08/2015 13200 Prepaid Expenses
09/22/2015 Hyatt Regency Newport Beach 11205 Checking - Union Bank
08/07/2015 66243 Booking Incentives
09/22/2015 Newport Beach Marriott Hotel & S... 11205 • Checking - Union Bank
09/08/2015 13200 • Prepaid Expenses
5654 09/22/2015 Hyatt Regency Newport Beach 11205 • Checking - Union Bank
TrilogyFinSvcs0915 08/10/2015 13200 Prepaid Expenses
(225.83)
(225.83)
(2,750.00)
(2,750.00)
(225.83)
(225.83)
(1,500.00)
(1,500.00)
(500.00)
(500.00)
(2,000.00)
(2,000.00)
(300.00)
Type
Num
Date
Name
Account
Paid Amount
TOTAL
(300.00)
Bill Pmt -Check
5655
09/22/2015
Newport Beach Marriott Hotel & 5...
11205 • Checking - Union Bank
Bill
Society Scien 1015
09/08/2015
13200 Prepaid Expenses
(3,500.00)
TOTAL
(3,500.00)
Bill Pmt -Check
5656
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
CarlsonShaw0915
08/10/2015
13200 Prepaid Expenses
(1,000.00)
TOTAL
(1,000.00)
Bill Pmt -Check
5657
09/22/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
120715THEDUNCANGR...
08/11/2015
66243 Booking Incentives
(800.00)
TOTAL
(800.00)
Bill Pmt -Check
5658
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
McGraw HS 102015
08/13/2015
66243 Booking Incentives
(2,000.00)
TOTAL
(2,000.00)
Bill Pmt -Check
5659
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
CMFG Life 0916
08/21/2015
66243 Booking Incentives
(2,500.00)
TOTAL
(2,500.00)
Bill Pmt -Check
5660
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Excellence 1015
09/08/2015
13200 Prepaid Expenses
(700.00)
TOTAL
(700.00)
Bill Pmt -Check
5661
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Type
Num
Date
Name
Account
Paid Amount
Bill
USASA Admin 1015
09/08/2015
13200 Prepaid Expenses
(1,600.00)
TOTAL
(1,600.00)
Bill Pmt -Check
5663
09/22/2015
Hyatt Regency Newport Beach
11205 Checking - Union Bank
Bill
Oveflow Broadcom1015
09/08/2015
13200 Prepaid Expenses
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5635
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
Costco 1015
09/08/2015
13200 Prepaid Expenses
(5,000.00)
TOTAL
(5,000.00)
Bill Pmt -Check
5664
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
WomeninEnergy1015
09/08/2015
13200 Prepaid Expenses
(750.00)
TOTAL
(750.00)
Bill Pmt -Check
5665
09/22/2015
Hyatt Regency Newport Beach
11205 • Checking - Union Bank
Bill
McGraw-Hill 1015
09/08/2015
13200 Prepaid Expenses
(1,800.00)
TOTAL
(1,800.00)
Bill Pmt -Check
5666
09/22/2015
Blue Shield of California
11205 • Checking - Union Bank
Bill
152570006028
10/01/2015
61110 Medical Insurance
(4,866.20)
TOTAL
(4,866.20)
Bill Pmt -Check
5667
09/22/2015
Co Power
11205 • Checking - Union Bank
Bill
521813
10/01/2015
61125 Vision Insurance
(62.70)
61120 Dental Insurance
(531.80)
Type Num Date Name Account Paid Amount
TOTAL
Bill Pmt -Check
Bill
TOTAL
Check
TOTAL
Check
TOTAL
Check
TOTAL
5668 09/23/2015 The Irvine Company, LLC
October2015 10/01/2015
ACH 09/25/2015 American Express
TRNSFR 09/30/2015 Visit Newport Beach Inc.
09/30/2015
(594.50)
11205 • Checking - Union Bank
62100 Lease (7,632.00)
(7,632.00)
11205 • Checking - Union Bank
22100 American Express Corpor... (41,500.40)
(41,500.40)
11205 • Checking - Union Bank
23300 VNB Inc - Intercompany ... (40,813.67)
(40,813.67)
11205 • Checking - Union Bank
64150 Bank Fees (5.001
(5.00)
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
with
INDEPENDENT AUDITORS' REPORT THEREON
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
CONTENTS
Independent Auditors' Report...............................................................
Financial Statements:
Statement of Financial Position .....................................................
Statement of Activities..................................................................
Statement of Cash Flows...............................................................
Notes to Financial Statements.......................................................
.... ..... 1-2
Corbin &
KMJ 'I
it 4 r.
,ax and Au
Independent Auditors' Report
Board of Directors
Newport Beach & Company
We have audited the accompanying financial statements of Newport Beach and Company (a
non-profit organization) (the "Organization"), which comprise the statement of financial position
as of June 30, 2015, and the related statements of activities and cash flows for the year then
ended, and the related notes to the financial statements..
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial 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 financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
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 financial
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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
p 714 380 6565 f 714 380 656,E 555 Antony Blvd., Ste 1000 Costa Mesa CA 92626 kirjpartnerscpa.corn
p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Mis CA 91364
p 760 431 6465 f 760 431 54166 2768 Loker Avenue West Suite 101 Carlsbad CA 92010
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Newport Beach & Company as of June 30, 2015, and the changes in its
net assets and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
v M1 UttA , Cemn LL-P
KMJ Corbin & Company LLP
Costa Mesa, California
September 30, 2015
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENT OF FINANCIAL POSITION
June 30, 2015
ASSETS
Current assets:
Cash $ 61,061
Accounts receivable 78,172
Related party receivables 135,014
Prepaid expenses and other current assets 46,269
Total current assets 320,516
Property and equipment, net 72,996
$ 393.512
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 25,694
Related party payables 204,744
Accrued expenses 23,105
Accrued payroll and related expenses 182,551
Current portion of deferred rent 10,058
Total current liabilities 446,152
Deferred rent, net of current portion 6,193
Total liabilities 452,345
Commitments and contingencies
Unrestricted net assets (58,833)
$ 393,512
See accompanying notes to financial statements
3
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENT OF ACTIVITIES
For The Year Ended June 30, 2015
Support and revenues:
Contribution income from related party $ 1,928,880
Community marketing income 340,218
Total support and revenues 2,269,098
Expenses:
Marketing 472,567
Salaries and benefits 1,373,039
General and administrative 533,218
Depreciation and amortization 25,135
Other 506
Total expenses 2,404,465
Decrease in unrestricted net assets (135,367)
Net assets, beginning of year 76,534
Net assets, end of year $ (58,833)
See accompanying notes to financial statements
4
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
STATEMENT OF CASH FLOWS
For The Year Ended June 30, 2015
Cash flows from operating activities:
Decrease in unrestricted net assets
$ (135,367)
Adjustments to reconcile decrease in unrestricted
net assets to net cash provided by operating activities:
Depreciation and amortization
25,135
Loss on disposal of property and equipment
506
Changes in operating assets and liabilities:
Accounts receivable
(29,048)
Related party receivables
(45,643)
Prepaid expenses and other current assets
(10,941)
Accounts payable
(17,258)
Related party payables
204,744
Accrued expenses
4,606
Accrued payroll and related expenses
54,781
Deferred rent
911
Net cash provided by operating activities 52,426
Cash flows from investing activities:
Purchases of property and equipment (17,424)
Proceeds from sales of property and equipment 1,989
Net cash used in investing activities (15,435)
Net change in cash 36,991
Cash at beginning of year 24,070
Cash at end of year $_ 61,061
See accompanying notes to financial statements
5
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 1 — ORGANIZATION
Nature of Operations
Newport Beach & Company (the "Organization") is a non-profit organization formed under the
laws of the State of California in 2013. The Organization specializes in marketing and
promotion services related to enhancing the economic development for the City of Newport
Beach (the "City"). The Organization currently has agreements with the City to manage its
public access television channel and to provide services to the Newport Beach Restaurant
Association Business Improvement District, and the Balboa Village Merchants Association. By
embracing a variety of neighborhoods, businesses and individual unique voices into a
complementary story, the Organization seeks to strengthen all of its partners, drive new revenue
to the City and enhance the City's overall economic vibrancy.
Newport Beach TV ("NBTV")
The agreement between the Organization and the City, which expires on March 31, 2016,
provides management and consulting services in support of NBTV. Such services
include production, administrative, and sponsorship services.
Newport Beach Restaurant Association Business Improvement District ("NBRA BID")
The agreement between the Organization and the City, which expires on June 30, 2016,
provides marketing planning and programming, public and media relations, research and
measurement, membership and community events services to the City related to the
NBRA BID.
Balboa Village Merchants Association (BVMA")
The agreement between the Organization and BVMA, which expires on June 30, 2016,
provides advertising, promotions and design, online and social media, public relations
and e-communications and other miscellaneous services to BVMA.
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. As of and for the year ended June 30, 2015, the Organization had
no temporarily or permanently restricted net assets.
rej
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are reported as increases in unrestricted net assets unless use of the related assets is
limited by donor -imposed restrictions. Expenses are reported as decreases in unrestricted net
assets. Gains and losses on investments and other assets are reported as increases or decreases in
unrestricted net assets unless their use is restricted by explicit donor stipulations or by law. The
Organization incurred expenses related to program activities of approximately $637,000 for the
year ended June 30, 2015.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Significant estimates made by the
Organization's management include, but are not limited to, the collectability of receivables, the
recoverability of long-lived assets and the allocation of expenses to program expenses as
disclosed above. Actual results may differ from those estimates.
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation ("FDIC") up to $250,000 per institution. At June 30, 2015, the Organization had no
uninsured balances. The Organization periodically reviews the quality of the financial
institutions it has deposits with to minimize risk of loss.
Accounts Receivable
Accounts receivable from various customers are carried at original invoice amount less an
estimate made for doubtful receivables based on a review of all outstanding amounts at year end.
Management determines the allowance for doubtful accounts by identifying troubled accounts
based on current and historical experience. Receivables are written off when deemed
uncollectible. At June 30, 2015, the Organization considers receivables to be fully collectible
and accordingly did not record an allowance for doubtful accounts.
As of June 30, 2015, two customers accounted for approximately 96% of the Organization's total
accounts receivable balance.
7
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their
estimated useful lives or the related lease term. Maintenance and repairs are charged to expense
as incurred. Significant renewals and betterments are capitalized. It is the Organization's policy
to capitalize property and equipment over $1,000. At the time of retirement or other disposition
of property and equipment, the cost and accumulated depreciation or amortization are removed
from the accounts and any resulting gain or loss is reflected in the statement of activities.
Impairment of Long -Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the
estimated future cash flows (undiscounted and without interest charges) from the use of an asset
are less than the carrying value, a write -down would be recorded to reduce the related asset to its
estimated fair value. At June 30, 2015, the Organization's management believes there is no
impairment of its long-lived assets. There can be no assurance, however, that market conditions
will not change or demand for the Organization's services will continue, which could result in
impairment of long-lived assets in the future.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
statements at their estimated fair market values at date of receipt. Contributions of services are
recognized if the services received create or enhance nonfinancial assets or require specialized
skills, are provided by individuals possessing those skills and would typically need to be
purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their
value. During the year ended June 30, 2015, the Organization did not have significant
contributed materials and services.
0
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal or state income taxes. During the year ended June 30, 2015, the
Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in
operating expenses. At June 30, 2015, the Organization did not have any unrecognized tax
benefits. As the Organization was newly formed in 2013, all tax filings are still subject to U.S.
federal, state or local income tax examinations by tax authorities.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2015, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto.
NOTE 3 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30, 2015:
Leasehold improvements
Computer equipment
Office furniture and fixtures
Less accumulated depreciation and amortization
$ 7,614
57,284
56,755
121,653
(48,657)
$ 72.996
9
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 4 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under leases for its facility and certain equipment, which are
accounted for as operating leases. The leases expire through November 2023 and rent is payable
between $440 and $47,975 per month. The facility lease contains a five-year extension option at
the end of the lease term.
Total rent expense incurred by the Organization under operating leases was approximately
$241,000 for the year ended June 30, 2015, and is included in general and administrative
expenses. This is net of the amounts paid by the related party pursuant to the Agreement
disclosed in Note 6.
Minimum future payments due on non -cancelable facility and equipment lease commitments in
excess of one year are as follows:
Years Ending
June 30.
2016
$ 426,000
2017
429,000
2018
462,000
2019
474,000
2020
496,000
Thereafter
1,865,000
$ 4,152,000
Commitments
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $500 to $6,500 per month over
various terms with approximately one year or less remaining at June 30, 2015. From these
commitments, the Organization incurred approximately $128,000 of expenses for the year ended
June 30, 2015, which are recorded in marketing expenses in the accompanying statement of
activities.
10
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 4 — COMMITMENTS AND CONTINGENCIES continued
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required
to make payments to a guaranteed or indemnified party, in relation to certain actions or
transactions. The Organization indemnifies its directors, officers, employees and agents, as
permitted under the laws of the State of California. In connection with its facility leases, the
Organization has indemnified its lessor for certain claims arising from the use of the facilities.
The duration of the guarantees and indemnities varies, and is generally tied to the life of the
agreement. These guarantees and indemnities do not provide for any limitation of the maximum
potential future payments the Organization could be obligated to make. Historically, the
Organization has not been obligated nor incurred any payments for these obligations and,
therefore, no liabilities have been recorded for these indemnities and guarantees in the
accompanying statement of financial position.
NOTE 5 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan
provides for matching contributions based upon employees' voluntary contributions and the
Organization's contributions. The total expense recorded by the Organization during the year
ended June 30, 2015 was approximately $59,000, which is recorded in salaries and benefits
expenses in the accompanying statement of activities.
NOTE 6 — RELATED PARTY TRANSACTIONS
During the year ended June 30, 2015, the Organization had transactions with a related party that
is also a non-profit organization. The related entity ("VN13") initiates, sponsors, promotes and
carries out plans, policies and activities to attract conferences and visitors to the City. VNB was
the driving force behind the formation of the Organization. Pursuant to an Agreement for
Services ("Agreement") dated April 1, 2013, the Organization was appointed by VNB as an
exclusive provider of services that VNB shall need to carry out its mission and obligations to the
City. In consideration for these services, VNB agreed to pay a monthly fee of $1,000 through
the beginning of January 2015, at which time the monthly fee was increased to $5,000 per
month, plus reimburse the Organization for all reasonable expenses incurred by it in carrying out
its duties to VNB, including rent, payroll and related, and other direct marketing costs. For the
year ended June 30, 2015, the Organization billed $1,877,380 to VNB for these fees and costs,
which are recorded in contribution income from related party in the accompanying statement of
activities. The Agreement expires in March 2016 and has one three-year renewal option. In
addition, during the year ended June 30, 2015, VN13 agreed to contribute an additional $51,500
to the Organization, which is also recorded in contribution income from related party in the
accompanying statement of activities.
11
NEWPORT BEACH & COMPANY
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 6 — RELATED PARTY TRANSACTIONS continued
As of June 30, 2015, the Organization has related party receivables of $135,014 and payables of
$204,744 in the accompanying statement of financial position.
12
VISIT NEWPORT BEACH INC.
(a Non -Profit Organization)
EXPENDITURES REPORT
For The Year Ended June 30, 2015
with
INDEPENDENT AUDITORS' REPORT THEREON
KMJot i s,
.at:;I: ):`t
Independent Auditors' Report
Board of Directors of
Visit Newport Beach Inc.
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Agreement Between the City of
Newport Beach and Visit Newport Beach Inc. for Tourism Promotion, Branding, and Marketing
Services, that Visit Newport Beach Inc. (the "Organization") complied with the provisions in
Section 4 of the Agreement Between the City of Newport Beach and Visit Newport Beach Inc.
for Tourism Promotion, Branding, and Marketing Services (the "Agreement") regarding the
attached 2015 Expenditures Report, summarizing the expenditures of funds received pursuant to
the Agreement during the year ended June 30, 2015. Management is responsible for the
Organization's compliance with those requirements. Our responsibility is to express an opinion
on management's assertion about the Organization's compliance based on our examination.
Our examination was conducted in accordance with the attestation standards issued by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a
test basis, evidence about the Organization's compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances. Included among our
procedures were examining 40 haphazardly selected expenditures to determine that they were
expended in accordance with Section 4 of the Agreement.
We believe that our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the Organization's compliance with specified
requirements.
In our opinion, management's assertion that Visit Newport Beach Inc. complied with the
provisions of Section 4 of the Agreement regarding the attached 2015 Expenditures Report for
the year ended June 30, 2015, is fairly stated, in all material respects.
K M Co�kAA, C0" LLP
KMJ Corbin & Company LLP
Costa Mesa, California
September 30, 2015
p 714 380 6665 f 714 380 6666 555 Anton Blvd Suite'000 Costa rasa CA 92626 krrtjpa tnerscpaxon-,
p 818 999 6885 f 818 704 4668 20720 Ventura Blvd Su fe 160 Woodland hills CA 91354
o 760 431 5465 f 700 431 5466 2768 i_oker Avenue West Suite 101 Carlsbad CA 92010
VISIT '°
..h A C11 I ITC.
Management Staternent Regarding Compliance With e Provisions of the Agreement
Betweenthe City of Newport Beach and Visit Newport Beads Irc. for Tourism Promotion,
Branding, and Marketing Services
We, as members of management € f Visit `te-vport Beach Inc, (the "Organization"), are responsible for
complying with the provisions of Section 4 of the Agreement Between the City of Newport Beach and
Visit Newport, Beach Inc. (collectively, the "Parties") for Tourism Promotion, Branding, and Marketing
Services (the "Agreement") in that funds received by the Organization pursuant to this Agreement were
expended in accordance with this Agreement. We are, ;responsible for establishing and maintaining
effective internal controls over compliance with the provisions of Section 4 of the Agreement. We have
performed an evaluation of the Organizatien's compliance witb the provisions of Section 4 of the
Agreement regarding finds expended during the year ended June 30, 2015, as summarized in the attached
2015 Expenditures Report. Based on this evaluation, we assert that the Organization was in compliance
with the provisions of Section 4 of the Agreement as described below:
Section 4 of the Agreement requires the Organization to "develop, playa, carry out, and supervise a
program to market and promote the Newport Beach brand and to promote tourism in, and serve the creeds
of, visitors to Newport Beach as well as increase, the arraount of TOT collected through their promotional
activities ('Services'). Subject to the foregoing sentence, the Services shall, at a minimum, include the
following: (a) the maintenance of suitable office -space and the employment cif competent personnel to
carry out the promotional, branding and marketing duties; (b) the preparation of brochures, publications,
guides, on-line promotions, social network efforts, and other marketing materials and information that
inform prospective tourists and visitors of the recreational activities, cultural assets, shopping and dining
Opportunities, night -tithe stay opportunities; and natural beauty of Newport Beach, (c) the dissemination
of information described in this section by way of the media, direct mail, handouts, social networkin&
websites, smart phone applications, or other means of distribution; and (d) the development and
implementation of specific marketing programs designed to increase awareness of the Newport Beach
brand and to increase business and visitor trade in Newport Beach.; and (e) any additional Services when
proposed by the City which are consistent with the promotion oftocrrism, and the Newport Beach brand
which are mutually agreeable and acceptable to the Parties."
iris' _ ion rt Beach c.
By
Lesley wain
Chief l~ nancial Officer
10oo Newlimi't t enter Drive wile t.�o M€wport fief?ch C"it 9266o �500-- 4-(,'O i T rFisztazw>sc �cittla�rtclt,cc>rrr
2015 Expenditures Report
July 1, 2014- June 30,
2015
2015 Expense
61000 • Salaries
61010 Salaries
$ 35,882
61030 Payroll Tax Expenses
L662
Total 61000 • Salaries
40,544
61100 Benefits
61160 Personnel Benefit
375
Total 61100 • Benefits
375
63000•Insurance
63100 General Liability Insurance
844
63300 Board of Directors Insurance
3,296
Total 63000•Insurance
4,140
64000 • Operating Expenses
64100 Office Supplies
38
64101 Stationary
860
64110 Office Equipment Leases
2,658
64120 Equipment Repairs & Maintenance
1,483
64125 Computer Software (non-deprec)
(339)
64130 Voice and Data - Office
1,443
64140 Postage
239
64145 Shipping Charges
650
64150 Bank Fees
675
64160 Membership Dues
41,562
64170 Team Meetings
300
64175 Governance Meeting Expenses
254
64190 Business Licensing and Fees
180
64200 • Professional Services
64201 Audit Fees
9,500
64202 Tax Preparation Fees
(100)
64204 Legal Fees
7,545
64205 Payroll Processing Service
2,220
64206 Independent Contractors
4,844
Total 64200 • Professional Services
24,009
64400 Bad Debt Expense
315
64310 Contribution Expense
51,500
64500 Other Operating Expense
3,400
64600 Business Meals/Entertainment
3,000
64700 Temporary Personnel
5,956
Total 64000 • Operating Expenses
138,183
65000 • Travel
65100 Airfare
1,205
65200 Accommodations
2,920
65300 Meals
435
65400 Transportation Costs
773
65405 Mileage
30
65500 Other Travel Costs
85
Total 65000 • Travel
5,348
66000 • Advertising
66101 Consumer - Advertising
381,673
66102 Local Events - Advertising
51,279
66103 Media Promotions
12,000
66104 Non -Media Promotions
5,682
66200 • Agency Management
66201 Fees and Expenses
73,08E
66203 Creative Design/Development
306,120
66205 Photography
15,593
66206 Other Contingencies
3,966
Total 66200 • Agency Management
398,767
Total 66000 • Advertising
849,401
Page 1 of 3
2015 Expenditures Report
67000 • Marketing
67100 • Community Relations
67101 Research
67103 Community Sponsorships
67104 Annual Marketing Outlook Event
67105 Awards
67107 Promotional Items
67108 VNB Inc. Events
67111 Local Event Marketing
Total 67100 • Community Relations
67300 • Collateral
67302
Map of Newport Beach
67305
Calendar of Events
67306
Wedding Guide
67308
Community Report
67309
Marketing Plan
67311
Collateral Shoot Expenses
67312
Collateral Distribution
67314
Trails Guide
Total 67300 • Collateral
67400 - International Marketing
67401 Consulting Fees
67402 TTI FAM Tours
67403 Promotions
67404 Trade Shows
67405 Airfare
67406 Accommodations
67407 Meals
67408 Transportation Costs
67409 Other Travel Costs
67410 Business Meals,Entertainment
67411 Promotional Items
67413 International Sales Mission
Total 67400•International Marketing
67500 • Online Marketing
67501 Social Media
67502 Website Maintenance
67503 Online Search Advertising
67504 Digital Advertising
67505 Online Contests/Promotions
67506 Mobile Application
67508 Website Redesign Expenses
67510 Software(non-deprec)
Total 67500 • Online Marketing
67600 • Public Relations
67601 Media Services
67602 Media FAM Tours
67603 Promotions
67604 - Consulting Fees
67605 Special Programs
67607 Media Relations
Total 67600 • Public Relations
Total 67000 • Marketing
68000 • Newport Beach & Company Fees
C 68001 NB&Co Fees
Total 68000 - Newport Beach & Company Fees
Total 2015 Expenses
Other Expenditures:
Fixed asset additions capitalized
Change in other prepaid expenses and current liabilities, net
Total 2015 Expenditures
July 1, 2014- June 30,
2015
111,800
2,575
9,535
942
4,021
8,003
58,810
195,586
24,762
6,322
17,522
7,285
2,394
17,632
30,047
7,215
113,179
78,697
18,455
149,972
10,723
20,012
10,381
3,461
1,501
1,875
1,371
10,586
18,067
325,101
16,088
44,701
109,723
26,638
1,546
3,300
38,985
16,230
257,211
33,899
24,972
100
45,394
22,223
5,888
132,476
1,023,553
1,841,380
t,841,380
3,902,924
13,500
(438,1811
$ 3,478,243
Page 2 of 3
NOTES:
2015 Expenditures Report
Included in this account are expenditures for or contributions to special events and not -for -profit organizations in Newport Beach as follows
Vendor Event Amount
Orange County CA Golf Coast Check returned - declined sponsorship for the 2015 event (5,000)
Crystal Cove .Alliance Event sponsorship - printing of event program 1,000
Crystal Cove .Alliance Printing invitations for the September event 4,000
The Mini Express, Inc. Train for the Newport Dunes Log of the Bay Event 575
$ 575
Consists of $51,500 to four business units of Newport Beach R Company, a 501(c)(o) entity headquartered in Newport Beach, at $6,500 to Balboa Village
Merchants Association ("BVMA"), $5 000 to Balboa Island BID, $20,000 to Newport Beach TV ("NBTV"), and $20,000 to Dine Newport Beach ("DINE
NB")
Consist of reimbursements for costs incurred by Newport Beach & Company as follows:
Class of Expense Amount
Salaries, Benefits $ 1,385,591
G&A Overhead 455,789
$ 1,841,380
Page 3 of 3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
For The Year Ended June 30, 2015
with
INDEPENDENT AUDITORS' REPORT THEREON
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
CONTENTS
Independent Auditors' Report ..........
Financial Statements:
Statement of Financial Position
Statement of Activities .............
Statement of Cash Flows .......
Notes to Financial Statements
Supplemental Information:
Schedule I — Statement of Financial Position by Funding Source ....................
Schedule II — Statement of Activities by Funding Source ................................
•
15
16
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1,,
Tux a n d A u,, 01z i 1
Independent Auditors' Report
Board of Directors
Visit Newport Beach Inc.
Report on the Financial Statements
We have audited the accompanying financial statements of Visit Newport Beach Inc. (a non-
profit organization) (the "Organization"), which comprise the statement of financial position as
of June 30, 2015, and the related statements of activities and cash flows for the year then ended,
and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial 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 financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
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 financial
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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
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o, 818 999 5835 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364.
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Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Visit Newport Beach Inc. as of June 30, 2015, and the changes in its net
assets and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Report on the Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information contained in Schedules I and II on pages 15-16
is presented for purposes of additional analysis and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
financial statements or the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the financial
statements as a whole.
"S CkQn1W, 191�"' LL.
KMJ Corbin & Company LLP
Costa Mesa, California
September 30, 2015
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENT OF FINANCIAL POSITION
June 30, 2015
ASSETS
Current assets:
Cash and cash equivalents
Investment
Related party receivables
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
Website development costs, net
Deposits and other assets
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable
Related party payables
Accrued expenses
Accrued payroll and related expenses
Current portion of deferred rent
Total current liabilities
Deferred rent, net of current portion
Total liabilities
Commitments and contingencies
Unrestricted net assets
$ 1,237,450
501,920
204,744
347,144
2,291,258
125,052
69,500
99,619
$ 2. 885,429
$ 636,572
135,014
146,535
168,306
12,953
1,099,380
6,128
1,105,508
1,479,921
$ 2. 885,429
See accompanying notes to financial statements
3
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENT OF ACTIVITIES
For The Year Ended June 30, 2015
Support and revenues:
Service fee revenues $ 8,150,057
Sponsorships 630
Interest income 4,787
Other income 1,025
Total support and revenues 8,156,499
Expenses:
Marketing (including $1,877,380 from related party — see Note 6) 5,966,722
Salaries and benefits 1,221,067
General and administrative 471,230
Depreciation and amortization 70,790
Related party contributions 51,500
Total expenses 7,781,309
Increase in unrestricted net assets 375,190
Net assets, beginning of year 1,104,731
Net assets, end of year $ 1.479,921
See accompanying notes to financial statements
4
Cash flows from operating activities:
Increase in unrestricted net assets
Adjustments to reconcile increase in unrestricted
net assets to net cash provided by operating activities:
Depreciation and amortization
Interest earned on investment
Changes in operating assets and liabilities:
Accounts receivable
Related party receivables
Prepaid expenses and other current assets
Deposits and other assets
Accounts payable
Related party payables
Accrued expenses
Accrued payroll and related expenses
Deferred rent
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of investment
Purchases of property and equipment
Net cash used in investing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
STATEMENT OF CASH FLOWS
For The Year Ended June 30, 2015
$ 375,190
70,790
(1,920)
1,890
(204,554)
(62,305)
30,000
532,390
45,793
50,004
51,577
(8,946)
879,909
(500,000)
(106,825)
(606,825)
273,084
964,366
$ 1,237,450
See accompanying notes to financial statements
5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 1 — ORGANIZATION
Nature of Operations
Visit Newport Beach Inc. (the "Organization") is a non-profit organization formed under the
laws of the State of California. The Organization currently has an agreement ("TOT
Agreement") with the City of Newport Beach (the "City") through December 31, 2024 to
promote tourism and serve the needs of visitors to the City. Under the terms of the TOT
Agreement, the Organization is responsible to develop, plan, carry out and supervise a program
to market and promote the Newport Beach brand and to promote tourism in, and serve the needs
of, visitors to the City as well as increase the amount of Transient Occupancy Tax collected
through its promotional activities.
Transient Occupancy Tax ("TOT")
The City collects a Transient Occupancy Tax as well as a Visitor's Service Fee applied to the
transient rental of lodging rooms (collectively, the "TOT"). The City pays the Organization 18%
of the annual TOT in monthly installments. As the Organization is not entitled to its share of the
TOT until paid by the City, amounts are recognized when received.
The City shall have the right, in its sole discretion, to adjust the payment (increase or decrease
the percentage of TOT paid to the Organization) as part of its once -annual budget adoption
process for any reason after notice to the Organization and an opportunity for the Organization to
formally comment on the adjustment. For the year ended June 30, 2015, the Organization
received approximately 54% of its service fee revenues from the City through the TOT. The
City has the right to terminate the TOT Agreement, without cause, by giving the Organization
three hundred sixty-five days' written notice of its intention to terminate. Should the City reduce
or stop its funding to the Organization due to the Organization's default or termination of the
Agreement, the Organization's operations will be impacted.
Tourism Business Improvement District ("TBID")
The Newport Beach Tourism Business Improvement District ("NBTBID") was established April
28, 2009, for a five-year term with the expiration date of April 28, 2014 and amended on
February 1, 2014 through December 31, 2024, pursuant to the Management District Plan (the
"Plan"). The NBTBID is funded by assessments levied on participating lodging businesses
within a specified district. The assessments are restricted for use for sales promotion and
marketing programs to market the City as a tourist, meeting and event destination as outlined in
the Plan. Either party may terminate this agreement by providing the other party ninety calendar
days' written notice prior to the effective date of termination. As the Organization is not entitled
to its share of the assessments collected until paid by the City, amounts are recognized when
6
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 1 — ORGANIZATION, continued
received. For the year ended June 30, 2015, the Organization received approximately 46% of its
service fee revenues from the City through TBID assessments.
As of June 30, 2015, the NBTBID is represented by eight (8) hotels within the city of Newport
Beach which collect a 3.0% tax on short-term stays. The City is entitled to 0.25% of the receipts
annually for the collection of the assessments and disbursements of the NBTBID.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. Net
assets and revenues, expenses, gains, and losses are classified based on the existence or absence
of donor -imposed restrictions. As of and for the year ended June 30, 2015, the Organization had
no temporarily or permanently restricted net assets.
Revenues are reported as increases in unrestricted net assets unless use of the related assets is
limited by donor -imposed restrictions. Expenses are reported as decreases in unrestricted net
assets. Gains and losses on investments and other assets are reported as increases or decreases in
unrestricted net assets unless their use is restricted by explicit donor stipulations or by law. The
Organization incurred expenses related to program activities of approximately $6,833,000 for the
year ended June 30, 2015.
Use of Estimates
The preparation of financial statements requires the Organization to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Significant estimates made by the
Organization's management include, but are not limited to, the recoverability of long-lived assets
and the allocation of expenses to program expenses as disclosed above. Actual results may differ
from those estimates.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Cash and Cash Equivalents
The Organization considers all highly liquid investments purchased with an initial maturity of
three months or less to be cash equivalents. The Organization maintains its cash balances at
various financial institutions. The total cash balances are insured by the Federal Deposit Insurance
Corporation (`FDIC") up to $250,000 per institution. At June 30, 2015, the Organization had
approximately $783,000 of uninsured balances. The Organization periodically reviews the
quality of the financial institutions it has deposits with to minimize risk of loss.
Investment and Fair Value
Investment consists of a certificate of deposit which is carried at amortized cost, which
approximates fair value.
Net appreciation (depreciation) in the fair value of the investment, which consists of the realized
and unrealized gains or losses on this investment, is shown in the statement of activities.
Accounting guidance defines fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal, or in the absence of a principal
market, the most advantageous market for the asset or liability, in an orderly transaction between
market participants on the measurement date. Accounting guidance establishes a fair value
hierarchy that requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. The standard describes three levels of inputs
in priority that may be used to measure fair value:
Level 1—Quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than quoted prices included within Level 1, such as quoted
prices for similar assets or liabilities; quoted prices in markets that are not active; inputs other
than quoted prices that are observable for the asset or liability (such as interest rates and yield
curves, credit risks, and default rates) or other inputs that are principally derived from or
corroborated by observable market data by correlation or by other means; and
Level 3—Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities.
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The fair value of the Organization's investment in a certificate of deposit is based partially upon
quoted prices in markets that are not active or inputs which are observable, either directly or
indirectly, for substantially the full term of the asset. The investment has been classified within
Level 2 of the valuation hierarchy.
The total investment balance is insured by the Securities Investor Deposit Insurance Corporation
("SIPIC") up to $500,000 per institution. At June 30, 2015, the Organization had approximately
$2,000 of uninsured balances. The Organization periodically reviews the quality of this financial
institution to minimize risk of loss.
Property and Equipment
Property and equipment are stated at cost. Donated assets are recorded at their fair market value
when received. The cost of purchased assets or fair market value of donated assets is depreciated
using the straight-line method over the estimated useful lives of the related assets which range
from three to seven years. Leasehold improvements are amortized over the lesser of their
estimated useful lives or the related lease term. Maintenance and repairs are charged to expense
as incurred. Significant renewals and betterments are capitalized. It is the Organization's policy
to capitalize property and equipment over $1,000. At the time of retirement or other disposition
of property and equipment, the cost and accumulated depreciation or amortization are removed
from the accounts and any resulting gain or loss is reflected in the statement of activities.
Website Development Costs
In accordance with the accounting guidance, the Organization accounts for the costs of
developing its website by capitalizing the costs during the application development stage when it
is probable that the project will be completed and the property will be used to perform the
function intended. Website development costs are amortized on a straight-line basis over their
estimated useful lives when completed, which approximate three years. The recoverability of
intangible assets is evaluated periodically, taking into account events or circumstances that
warrant revised estimates of useful lives or that indicate that impairment exists.
For the year ended June 30, 2015, the Organization recorded amortization expense on website
development costs totaling $46,333.
9
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Impairment of Lona-Lived Assets
The Organization evaluates long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If the
estimated future cash flows (undiscounted and without interest charges) from the use of an asset
are less than the carrying value, a write -down would be recorded to reduce the related asset to its
estimated fair value. At June 30, 2015, the Organization's management believes there is no
impairment of its long-lived assets. There can be no assurance, however, that market conditions
will not change or demand for the Organization's services will continue, which could result in
impairment of long-lived assets in the future.
Net Assets Designated for Appropriations
The Organization segregates unrestricted net assets appropriated for specific activities as
determined by the Board of Directors as unrestricted net assets, designated for appropriations in
the statement of financial position. During the year ended June 30, 2015 the Organization
released $6,000 of net assets designated by the Board of Directors of Visit Newport Beach for
expenses related to promotional events.
Contributed Materials and Services
Donated materials and other noncash contributions (if any) are reflected in the accompanying
statements at their estimated fair market values at date of receipt. Contributions of services are
recognized if the services received create or enhance nonfinancial assets or require specialized
skills, are provided by individuals possessing those skills and would typically need to be
purchased if not provided by donation. Other volunteer services that do not meet these criteria
are not recognized in the financial statements as there is no objective basis of deriving their
value.
One of the services provided by the Organization in its efforts to promote the City is to organize
site inspections and other promotional events with a variety of potential visiting groups. These
groups are introduced by the Organization's staff to the various hotels, restaurants, and other
local businesses involved in the tourism industry in Newport Beach. All businesses visited are
also sponsors of the Organization. Many of the Organization's sponsors contribute materials,
such as meals and rooms, in connection with this program. During the year ended June 30, 2015,
the Organization determined there were no significant contributed materials and services.
Additionally, a substantial number of unpaid volunteers have made significant contributions of
time to the Organization. No amounts have been reflected in the financial statements for these
donations as they do not meet the required criteria.
10
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Income Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section
501(c)(6) of the United States Internal Revenue Code and for California state income taxes under
Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has
no provision for federal' or state income taxes. During the year ended June 30, 2015, the
Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt tax
return. This process includes an analysis of whether tax positions the Organization takes with
regard to a particular item of income or deduction would meet the definition of an uncertain tax
position under current accounting guidance. The Organization believes its tax positions are
appropriate based on current facts and circumstances. The Organization's policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and penalties in
operating expenses. At June 30, 2015, the Organization did not have any unrecognized tax
benefits. The Organization is no longer subject to U.S. federal, state or local income tax
examinations by tax authorities for years before 2011.
Subsequent Events
The Organization has evaluated subsequent events through September 30, 2015, the date which
the financial statements were available to be issued. Based upon its evaluation, management has
determined that no subsequent events have occurred that would require recognition in the
accompanying financial statements or disclosure in the notes thereto.
NOTE 3 — PROPERTY AND EQUIPMENT
Property and equipment consists of the following at June 30, 2015:
Leasehold improvements $ 36,745
Computer equipment 20,968
Office furniture and fixtures 110,110
167, 823
Less accumulated depreciation and amortization (42,771)
$ 125,052
For the year ended June 30, 2015, the Organization recorded depreciation and amortization
expense on property and equipment totaling $24,457.
11
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 4 — COMMITMENTS AND CONTINGENCIES
Lease Agreements
The Organization is obligated under leases for its facility and certain equipment, which are
accounted for as operating leases. The leases expire through November 2023 and rent is payable
between $245 and $47,975 per month. The facility lease contains a five-year extension option at
the end of the lease term.
Total rent expense incurred by the Organization under operating leases was approximately
$80,000 for the year ended June 30, 2015, and is included in general and administrative
expenses. This is net of the amounts paid by the related party pursuant to the Agreement
disclosed in Note 6.
Minimum future payments due on non -cancelable facility and equipment lease commitments in
excess of one year are as follows:
Years Ending
June 30,
2016
$ 426,000
2017
429,000
2018
462,000
2019
474,000
2020
496,000
Thereafter
1,865,000
$ 4,152,000
Commitments
The Organization also has several commitments for databases and services regarding marketing,
promotion and other contracts ranging from approximately $15 to $3,166 per month over various
terms with one year or less remaining at June 30, 2015. From these commitments, the
Organization incurred approximately $89,000 of expenses for the year ended June 30, 2015,
which are recorded in marketing expenses in the accompanying statement of activities.
12
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 4 — COMMITMENTS AND CONTINGENCIES, continued
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required
to make payments to a guaranteed or indemnified party, in relation to certain actions or
transactions. The Organization indemnifies its directors, officers, employees and agents, as
permitted under the laws of the State of California. Pursuant to the TOT Agreement, the
Organization also indemnifies the City and all of its related boards, councils, officers,
employees, and volunteers from claims related to the conduct of the Organization or any of its
officers, employees, or associated individuals. In connection with its facility leases, the
Organization has indemnified its lessor for certain claims arising from the use of the facilities.
The duration of the guarantees and indemnities varies, and is generally tied to the life of the
agreement. These guarantees and indemnities do not provide for any limitation of the maximum
potential future payments the Organization could be obligated to make. Historically, the
Organization has not been obligated nor incurred any payments for these obligations and,
therefore, no liabilities have been recorded for these indemnities and guarantees in the
accompanying statement of financial position.
NOTE 5 — RETIREMENT PLAN
The Organization has a 401(k) retirement plan covering all eligible employees. The plan
provides for matching contributions based upon employees' voluntary contributions and the
Organization's contributions. The total expense recorded by the Organization during the year
ended June 30, 2015 was approximately $51,000 and is included in general and administrative
expenses.
NOTE 6 — RELATED -PARTY TRANSACTIONS
During the year ended June 30, 2015, the Organization had transactions with a related party that
is also a non-profit organization. The related entity (``NB & Co.") specializes in marketing and
promotion services that promote economic development with the City. Pursuant to an
Agreement for Services ("Agreement") dated April 1, 2013, the Organization appointed NB &
Co. as an exclusive provider of services that the Organization shall need to carry out its mission
and obligations to the City. In consideration for these services, the Organization agreed to pay
NB & Co. a monthly fee of $1,000 through beginning of January 2015, at which time the
monthly fee was increased to $5,000 per month, plus reimburse NB & Co. for all reasonable
expenses incurred by it in carrying out its duties to the Organization, including rent, payroll and
related, and other direct marketing costs. For the year ended June 30, 2015, the Organization
incurred $1,877,380 from NB & Co. for these costs, which are recorded in marketing expenses in
the accompanying statement of activities. NB & Co.'s costs were broken out as follows: $36,000
13
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Year Ended June 30, 2015
NOTE 6 — RELATED -PARTY TRANSACTIONS, continued
of direct marketing, $1,385,591 of salaries and benefits and $455,789 of general and
administrative. The Agreement expires in March 2016 and has one three-year renewal option.
In addition, during the year ended June 30, 2015, the Organization agreed to contribute $51,500
to this related party, which is recorded in related party contributions in the accompanying
statement of activities.
As of June 30, 2015, the Organization has related party receivables of $204,744 and payables of
$135,014 in the accompanying statement of financial position.
14
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE I - STATEMENT OF FINANCIAL POSITION BY FUNDING SOURCE
June 30, 2015
Current assets:
Cash and cash equivalents
Investments
Accounts receivables
Related party receivable
Prepaid expenses and other
current assets
Total current assets
Property and equipment, net
Website development costs, net
Deposits and other assets
Current liabilities:
Accounts payable
Related party payables
Accrued expenses
Accrued payroll and related
expenses
Current portion of deferred rent
Total current liabilities
Deferred rent, net of current portion
Total liabilities
Unrestricted net assets
TOT* TBID Eliminations Total
$ 1,133,515 $
103,935
501,920
-
293
-
174,793
29,951
128,829
218,315
1,939,350
352,201
13,008
112,044
69,500
-
99.619
-
$ 2. 221,477 $ 464.24
$ 429,407
$ 207,458
135,014
-
14,945
131,590
19,498
148,808
12.953
598,864
500,809
-
6,128
598,864
506,937
1,522,613
(42,692)
$ 2,121,477
$ 664,245
* Includes balances for other marketing and administrative costs.
$ - $ 1,237,450
501,920
(293) -
- 204,744
- 347,144
(293) 2,291,258
125,052
69,500
99.619
$ (293) $ 2. 885.429
$ (293)
$ 636,572
-
135,014
-
146,535
-
168,306
12.953
(293)
1,099,380
6,128
(293)
1,105,508
-
1,479,921
$ (293)
$ 2 585 429
I5
VISIT NEWPORT BEACH INC.
(A Non -Profit Organization)
SCHEDULE II - STATEMENT OF ACTIVITIES BY FUNDING SOURCE
For The Year Ended June 30, 2015
Support and revenues:
Service fee revenues
Sponsorships
Interest income
Other income
Total support and revenues
Expenses:
Marketing
Salaries and benefits
General and administrative
Depreciation and amortization
Related party contributions
Total expenses
Increase (decrease)in unrestricted
net assets
Net assets, beginning of year
Net assets, end of year
TOT* TBID Eliminations Total
$ 4,421,852 $ 3,728,205
630 -
4,407 380
1.025
4,427,914 3,728,585
3,628,911
2,337,811
40,919
1,180,148
211,594
259,636
49,085
21,705
51,500
3,982,009
3,799,300
445,905
(70,715)
1,076,708
28,023
$ 1. 222.613
$ (42 6921
* Includes balances for other marketing and administrative costs.
$ 8,150,057
630
4,787
1.025
8,15 6,499
5,966,722
1,221,067
471,230
70,790
51.500
7,781,309
375,190
1,104,731
$ 1, 779,921
16