FRENCH QUARTER FESTIVALS. INC.

NEW ORLEANS. LOUISIANA

FINANCIAL STATEMENTS

AS OF AND

FOR THE YEARS ENDED

DECEMBER 3 L 2015 AND 2014

ERICKSEN KRENTEL & LAPORTE. CERTIFIED PUBLIC ACCOUNTANTS • CONSULTANTS

TABLE OF CONTENTS

PAGE

ACCOUNTANTS' COMPILATION REPORT 1

FINANCIAL STATEMENTS;

Exhibit "A" Statements of Financial Position 2

Exhibit "B" Statements of Activities 3

Exhibit "C" Statements of Cash Flows 4

SUPPLEMENTARY INFORMATION:

Schedule "1" Schedule of Compensation, Benefits, and Other Payments to Agency Head 5

Schedule of Findings 6

Schedule of Prior Year Findings 7

ERICKSEN KRENTEL & LAPORTE. CERTIFIED PUBLIC ACCOUNTANTS • CONSULTANTS

ACCOUNTANTS' COMPILATION REPORT

To the Board of Directors of French Quarter Festivals, Inc. New Orleans, Louisiana

Management is responsible for the accompanying financial statements of French Quarter Festivals, Inc. (a nonprofit organization), which comprise the statements of fmancial position as of December 31, 2015 and 2014, and the related statements of activities and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these fmancial statements.

Management has elected to omit substantially all disclosures required in financial statements prepared in accordance with accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the fmancial statements, they might influence the user's conclusions about the Organization's fmancial position, changes in net assets, and cash flows. Accordingly, the fmancial statements are not designed for those who are not informed about such matters.

Supplementary Information

The supplementary information contained in Schedule "1" is presented for purposes of additional analysis and is not a required part of the basic fmancial statements. This information is the representation of management. The information was subject to our compilation engagement; however, we have not audited or reviewed the supplementary information and, accordingly, do not express an opinion, a conclusion, nor provide any form of assurance on such supplementary information.

We are not independent with respect to French Quarter Festivals, Inc.

June 25, 2016 New Orleans, Louisiana

Certified Public Accountants

4227 Canal Street New Orleans, LA 70119 P: (504) 486-7275 | F: (504) 482-2516

Ericksen, Krentel 8 LaPorte LLP www.EricksenKrentel.com

1

2895 Highway 190, Ste213 Mandeville, LA 70471

P: (985) 727-0777 | E: (985) 727-6701

FRENCH QUARTER FESTIVALS, INC. STATEMENTS OF FINANCIAL POSITION

DECEMBER 31. 2015 AND 2014

fSee Accountants' Compilation Reportl

Exhibit "A"

2015 2014 ASSETS; Cash and cash equivalents Accounts receivable Other current assets Investments Equipment (net of accumulated depreciation of $15,421 in 2015

and $14,466 in 2014)

58,839 $ 60,480 33,649 876,779

6,131

175,673 12,127 7,927

992,283

Total assets $ 1,035,878 $ 1,188,010

LIABILITIES: Accounts payable Accrued payroll liabilities

70 $ 8,689

5,070 15,216

Total liabilities 8,759 20,286

NET ASSETS: Unrestricted:

Undesignated Board designated:

Reserve fund Temporarily restricted

506,509

400,000 120,610

633,124

400,000 134,600

Total net assets 1,027,119 1,167,724

Total liabilities and net assets $ 1,035,878 $ 1,188,010

Exhibit "B"

FRENCH QUARTER FESTIVALS, INC. STATEMENTS OF ACTIVITIES

FOR THE YEARS ENDED DECEMBER 31. 2015 AND 2014

fSee Accountants' Compilation Reportl

UNRESTRICTED NET ASSETS: 2015 2014

Public Suiinoit and Other Revenues: Beverage sales $ 790,772 $ 1,198,349 Food booth rental 231,863 234,978 Merchandise 262,919 318,324 Sponsorship 1,591,808 1,431,357 Advertising income 76,025 70,880 Other income 134,127 68,990 Revenues released from restrictions 134,600 113,471

Total unrestricted public support and other revenues 3,222,114 3,436,349

ExDcnscs: Program services 3,020,544 2,881,975 Supporting services:

Management and general 210,483 200,929 Fundraising 117,702 128,144

Total supporting services 328,185 329,073

Total expenses 3,348,729 3,211,048

Net change in unrestricted net assets (126,615) 225,301

TEMPORARILY RESTRICTED NET ASSETS:

Contributions 120,610 134,600 Released from restrictions (134,600) (113,471)

Net change in temporarily restricted net assets (13,990) 21,129

Change in net assets (140,605) 246,430

Net assets, beginning of year 1,167,724 921,294

Net assets, end of year $ 1,027,119 $ 1,167,724

FRENCH QUARTER FESTIVALS, INC. STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31.2015 AND 2014

(See Accountants' Compilation Renoif)

Exhibit "C"

2015 2014 CASH FLOWS FROM (USED FORI OPERATING ACTIVITIES: Change in net assets Adjustments to reconcile change in net assets to net cash

from (used for) operating activities:

(140,605) $ 246,430

Depreciation expense 955 -Bad debt expense 1,158 2,770

Changes in assets and liabilities: (Increase) in accounts receivable (49,511) (2,131) (Increase) in other current assets (25,722) (900) (Decrease) in accounts payable (5,000) (18,586) Increase (decrease) in accrued payroll liabilities (6,527) 2,973

Net cash from (used for) operating activities (225,252) 230,556

CASH FLOWS OJSED FORI INVESTING ACTIVITIES: Proceeds for sale of investments 115,504 . Purchase of investments - (175,961) Purchase of fixed assets (7,086) -

Net cash from (used for) investing activities 108,418 (175,961)

Net increase (decrease) in cash and cash equivalents (116,834) 54,595

Cash and cash equivalents, beginning of year 175,673 121,078

Cash and cash equivalents, end of year 58,839 $ 175,673

Schedule "1"

FRENCH QUARTER FESTIVALS, INC SCHEDULE OF COMPENSATION, BENEFITS, AND OTHER PAYMENTS TO AGENCY HEAD

FOR THE YEAR ENDED DECEMBER 31. 2015

(See Accountants' Compilation Reporti

Marci Schramm

Time served 01/01/15 through 12/31/15

Salary Benefits - insurance (health and dental) Benefits - retirement Benefits - cell phone

121,643 6,530 3,030 3,806

Total compensation, benefits, and other payments $ 135,009

FRENCH QUARTER FESTIVALS, INC. SCHEDULE OF FINDINGS

FOR THE YEAR ENDED DECEMBER 31. 2015

We have compiled the financial statements of French Quarter Festivals, Inc. as of and for the year ended December 31, 2015, and have issued our report thereon dated June 25, 2016. We conducted our compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. We did not audit or review the financial statements and, accordingly, did not express an opinion or provide any assurance about whether the fmaneial statements of French Quarter Festivals, Inc. were in accordance with accounting principles generally accepted in the United States of America.

During our engagement to compile the financial statements, we did not become aware of any matters that we deemed reportable to the management of French Quarter Festivals, Inc.

SECTION I - FINDINGS RELATED TO THE FINANCIAL STATEMENTS

NOT APPLICABLE

SECTION H - MANAGEMENT LETTER

NOT APPLICABLE

FRENCH QUARTER FESTIVALS, INC. SCHEDULE OF PRIOR YEAR FINDINGS

FOR THE YEAR ENDED DECEMBER 31.2015

SECTION I - FINDINGS RELATED TO THE FINANCIAL STATEMENTS

NOT APPLICABLE

SECTION H - MANAGEMENT LETTER

NOT APPLICABLE