PARK CENTRAL MANYassets.centralparknyc.org/pdfs/annual-reports/2002-report.pdf · QUESTIONING FACE...

THEMANY FACES

OF CENTRAL

PARK

AN

NU

AL

REP

ORT 2

00

2

INTR

OD

UCTIO

N

Faces of friendship, precision, caution, suavity, ideality; The spiritual, prescient

face-the always welcome, common, benevolent face, The face of the singing of music

-the grand faces of natural lawyers and judges, broad at the back-top; The faces

of hunters and fishers, bulged at the brows - the shaved blanch’d faces of orthodox

citizens; The pure, extravagant, yearning, questioning artist’s face… The sacred faces

of infants, the illuminated face of the mother of many children; The face of an amour,

the face of veneration; The faces as of a dream, the face of an immobile rock.

— Excerpt from Leaves of Grass, Walt Whitman, 1900

In Central Park, there is beauty, energy and life, and it’s all reflected on thefaces of the visitors, whether they are from New York or from another land…

1

2

MAY

OR

&CO

MM

ISION

ERLETTERS

CH

AIR

MA

N &

PRESID

ENT LETTERS

3

Central Park does not differentiate between good financial times and bad. It requires

constant maintenance, persistent preservation and important improvements whether

the markets are bull or bear.

Despite a severe economic downturn, nearly 25,000 individuals, foundations and

corporations made contributions to the Central Park Conservancy in FY 2002.

Furthermore, Mayor Michael Bloomberg and Parks Commissioner Adrian Benepe

have continued the tradition established by the City of New York to promote

the progress of Central Park. As a result, the Park remains a beautiful place for

everyone to enjoy.

My sincere gratitude extends to all those who championed Central Park this

past year. The Park has never looked better, and your support has made that possible.

A.J.C. Smith, Chairman

As this year comes to a close, those of us at the Conservancy are looking forward

to next year with optimism and anticipation. July 21, 2003 will be Central Park’s

150th anniversary.

To mark this historic occasion, the Conservancy is organizing a major celebration

with a series of special events beginning in April and continuing through the

remainder of 2003. The celebration will provide New Yorkers and visitors from

around the world the opportunity to pay tribute to Central Park, a treasured oasis

of peace and beauty in the heart of this great city.

The Park has lived through good times and bad. The 1960s and 1970s were

particularly difficult. A handful of prescient and passionate New Yorkers founded

the Central Park Conservancy in 1980, and the seeds were planted for a historic

transformation of the Park. Thanks to the support of the City of New York

and the generosity of thousands of individuals, corporations, and foundations,

the Park has been restored over the past 22 years.

The worst of times in Central Park are gone. The best of times are yet to come.

Regina S. Peruggi, President

On the eve of its 150th Anniversary, we celebrate Central Park's vital role as a

treasured oasis and respite from bustling city life. Calvert Vaux and Frederick Law

Olmstead's winning design was selected with the objective of providing a healthy

refuge from urban life where the people's spirit could be restored

by the beauty and power of nature. Today that mission is true more than ever.

Central Park has set the example for our City's more than 28,000 acres of public

parkland throughout the five boroughs as well as parks across the nation.

New Yorkers and visitors alike are the fortunate beneficiaries of this extraordinary

vision. In the aftermath of the September 11th tragedy, as Americans turned to their

parks for comfort and community renewal, we were reminded of how Central Park,

has imbued our nation's parks and open spaces in a meaningful and enduring manner.

We are lucky to have this national treasure as an integral part of city's fabric

and are grateful to the Central Park Conservancy for its outstanding dedication

to its care and preservation. We are also very fortunate that thousands of civic-minded

individuals, corporations, and foundations have supported the important work of

the Central Park Conservancy in partnership with the New York City Department

of Parks and Recreation. On behalf of our City's eight million citizens, I thank

the board and staff of Central Park Conservancy for its outstanding commitment

to excellence and service.

Michael R. Bloomberg, Mayor of the City of New York

It has been heartening to see how New Yorkers pulled together over the past year.

Bringing people together has always been the tradition in Central Park, which was

seen as a great "democratic experiment" in the 19th century.

Another groundbreaking experiment was the partnership established between

the Department of Parks and Recreation and the Central Park Conservancy.

For more than two decades, the City and the Conservancy have worked to restore

and maintain the world's most famous urban park, creating a model for park

management across the globe. This year was no exception. Whether it was

preventing further infestation of the Asian longhorned beetle or fighting the effects

of a prolonged drought, the Conservancy and Parks and Recreation continue to

work hand-in-hand to keep Central Park beautiful for its 25 million annual visitors.

Adrian Benepe, Commissioner

5

THE SACRED FACES OF INFA NTS, THE ILLUMINATED FACE

THEV

ISITORS

Central Park was built in the 19th century

– long before parks had themes.

Yet, approximately 25 million people

visited Central Park in 2002, more than

the combined annual attendance at DisneyWorld and EPCOT

in Orlando, Florida. Twenty-three new colorful three-sided signs

located at major pedestrian intersections now greet

park visitors. The signs, funded in part by the New

YorkTimes Company Foundation, are more than

six feet tall and include a map of Central Park and

descriptions of nearby points of interest. For those who need

more assistance in finding their way, the Conservancy’s four

visitor centers are a welcome help. More than

500,000 people visited the centers last year for

information or to attend the Conservancy’s

recreation, exhibition and public programs.

One of the most frequently asked questions: “Where’s Balto?”

Many younger Park visitors can surely provide the

answer. The bronze sculpture of the famed

Siberian husky that led a dogsled team

through an Alaskan blizzard

is located on a rock

outcrop near the

East Drive at 67th Street.

THE IN

HA

BITA

NTS

7

THE FACES OF HUNTERS AND F ISHERS,BULGEDAT THE BROWS

There are thousands of plant and animal

species living in Central Park, but bugs grabbed

the headlines in 2002. A welcome creature in

the spotlight was Nannarrup hoffmani, a tiny

centipede discovered by researchers from the American Museum

of Natural History in the Ramble and the North Woods. It is the

first new species found in Central Park in more than a century.

The four-tenths-of-an-inch-long centipede, one of the world’s

smallest, inhabits clammy leaf litter — piles of decomposing leaves

and fungi mixed with soil. Like many

NewYorkers, Nannarrup hoffmani originally came from somewhere

else. It was likely transported into Central Park in potted soil.

In February, infestations of the Asian longhorned beetle were

discovered in two trees in the Hallett Nature Sanctuary, located

in the southeast corner of the Park. Approximately one inch long

with a shiny black body, white spots and long antennae, the

wood-boring insect had already destroyed 4,500 trees in Brooklyn,

Queens and other parts of Manhattan.

Working closely with state and federal agriculture officials

and the New York City Department of Parks and Recreation,

Park staff and more than 100 Conservancy-trained

volunteers combed the Park in search of additional

signs of the voracious pest. No other infestations were

discovered, but several thousand hardwood trees, which

are favored by the beetle, were treated with an insecticide

to prevent future infestations.

THE IC

ON

S

The Angel of the Waters presiding over

Bethesda Terrace. The Imagine mosaic at

Strawberry Fields. The dramatic Manhattan

skyline towering over Sheep Meadow.

These are powerful images of Central Park.

The Central Park Conservancy is dedicated to preserving these

and other visions for the enjoyment of Park visitors now and

in the future. The Conservancy was honored this year with two

prestigious preservation awards. The National Trust for Historic

Preservation and Heritage Preservation

along with their partners, the American

Institute for Conservation and Artistic

Works, recognized the Conservancy for

its exemplary work over the past 22 years

restoring Central Park’s landscapes,

sculptures and statuary, and historic arches and bridges.

Angel of the Waters and the Park’s other ornamental fountains

have been turned off since last spring because of drought restrictions

imposed by the City. Water used for maintenance was also

reduced by 30 percent. Irrigation was limited to landscapes and

plantings that were the most fragile, including major lawns,

ballfields and recently restored areas.

The drought restrictions were lifted after

welcome rains in October and a

generally wet fall gives us hope for

the spring planting season ahead.

FACES OF FRIENDSHIP, PRECISIO N,CAUTION,SUAVITY, IDEALITY9

THE PURE EXTRAVAGANT, YEA RNING QUESTIONING FACE

Maintaining Central Park has always been

a challenge, particularly now because of its

unparalleled popularity. Fortunately, a staff

of dedicated professionals works 365 days

a year – under the hot summer sun and in the icy cold of

winter– to keep the Park clean and beautiful.

They are assisted by more than 2,500 enthusiastic

volunteers who put in 55,000 plants, painted 700

benches, filled 1,200 bags with debris and spread

29 tons of mulch this year.

Students also did their part to help maintain Central

Park. High school students, in particular, took advantage

of the opportunity to work in Central Park raking, planting and

painting. The teens gained valuable work experience while

accumulating community service credits required for graduation.

More than 10,000 kindergarten through 12th grade students

benefited from the Conservancy’s community service programs

and nature education classes, which for the first time were held

in partnership with the Parks Department’s Urban Park Rangers.

The Central Park Conservancy has also partnered with

The Horticultural Society of New York to provide horticulture

classes to adults. Gardeners discouraged by dandelions or drooping

dahlias can now get the help they need from

experts from The Horticultural Society and

Central Park staff. The first classes were held this

past fall and will continue through spring 2003.

THE STEW

ARD

S

11

THEB

ENEFA

CTO

RS

13

Two of the Park’s major water bodies also

received major improvements. A generous

gift from Sheila C. Labrecque and her late

husband, Thomas G. Labrecque, is funding

the restoration of the Pool. An idyllic landscape with grassy

banks and cascading willows, located off Central Park West

and 102nd Street, the Pool will open next spring.

Restoration of the Pond, which was completed in the fall of 2001,

was made possible through the generosity

of Mr. and Mrs. Julian H. Robertson.

The restoration of the Pond, located near

Fifth Avenue and Central Park South,

included planting tens of

thousands of tulips and daffodils

that burst into color last spring,

new pathways, a waterfall,

and a series of cascades on the

landscape’s western arm.

Unfortunately, drought

restrictions prevented the use

of the new waterfall, which –

like most of the water sources

in the Park – is city water

turned on and off using an

old-fashioned spigot.

There is a perception that Central

Park is supported exclusively by

wealthy New Yorkers. Nothing

could be farther from the truth.

In 2002, nearly 20,000 individuals

became members of the Conservancy

contributing as little as $35.

These membership dollars provide

the essential “nuts and bolts”

funding to maintain the Park

throughout the year. In New York

City, passion for Central Park

is universal. It is not dependent upon income.

Nevertheless, there were some extraordinary

gifts made to Central Park in 2002. Evelyn West,

a life-long historic preservationist who passed

away last year, bequeathed half of her estate to the Central Park

Conservancy. This generous gift will assure the restoration of the

Minton tile ceiling at Bethesda Terrace Arcade, the only one of

its kind ever created. The Minton Company in Stoke-on-Trent,

England produced the nearly 16,000 tiles, with their vibrant and

intricate floral and geometric motifs, in the late-1860s.

The project will also provide major

infrastructure repairs to the Bethesda Arcade,

complementing the elegance of the terrace,

which was restored in 1982.

THE ALWAYS WELCOME, CO MMON, BENEVOLENT FACE

15

OTH

AN

NIV

ERSARY

56July 21, 2003 will commemorate Central Park's

sesquicentennial. One hundred-fifty-years earlier, the New

York State Legislature designated land in Manhattan for a

great "Central Park." To mark the Park's 150th anniversary,

the Central Park Conservancy is organizing a celebration with

events throughout the year. The celebration will begin with

an exciting in-Park preview event in April 2003 and continue

through the end of the year. Several special public events are

planned as well, including a daylong family birthday party on

July 19 and a light extravaganza on September 15.

Our goal is a citywide celebration of the significant role

Central Park has played in the New York City's history, and

to ensure that Central Park remains a world-class park for our

children, grandchildren, and generations beyond. Several other

New York City-based organizations are partnering with the

Conservancy to help mark the anniversary. These include the

Empire State Building, which will light its tower green in

honor of Central Park; the Metropolitan Museum of Art,

which will host a special exhibition; the New York Road

Runners Club, which organizes the New York City Marathon;

the New York Philharmonic and Metropolitan Opera, which

perform summer concerts on the Great Lawn in Central Park;

and Jazz at Lincoln Center's resident band, the Lincoln Center

Jazz Orchestra with Wynton Marsalis.

Since the day the first visitor stepped foot in Central Park,

the Park has held a special place in the hearts of New Yorkers

and millions of visitors from around the world. Central Park

serves as an easy escape from the tensions of the big city and is

a "must see" destination for tourists. And, the great social

experiment that was Central Park continues to succeed today as

new immigrants, native New Yorkers, and vacationers from all

socio-economic backgrounds enjoy the beauty of its 843 acres.

FINA

NCES

15

CENTRAL PARK CONSERVANCY, INC.STATEMENTS OF ACTIVITIESYear ended June 30, 2002(With comparative totals for 2001)(Dollars in thousands)

Revenues, gains, and other support:

Contributions 6,275 466 6,741 10,034 1,884 18,659 13,149

Revenue from the City of New York:

Contract revenue (note 11) 2,807 — 2,807 — — 2,807 2,778

Project revenue — — — — — — 924

Special events revenue 2,888 — 2,888 — — 2,888 3,140

Less expenses incurred for special events (552) — (552) — — (552) (748)

2,336 — 2,336 — — 2,336 2,392

Interest and dividends, net of investment expenses of $376 283 716 999 1,786 — 2,785 3,959

Net (loss) gain on sale of investments (2) (2,702) (2,704) (5,597) (1,151) (9,452) 5,654

Change in unrealized gain (loss) on investments — 882 882 1,882 321 3,085 (23,960)

Change in value of split interest agreements — — — (4) — (4) (9)

Other (note 8) 970 — 970 — — 970 1,046

Total revenues, gains, and losses 12,669 (638) 12,031 8,101 1,054 21,186 5,933

Net assets released from restrictions:

Contributions, other revenues, and gains 11,654 (954) 10,700 (10,700) — — —

Administrative cost recovery 740 — 740 (740) — — —

Total net assets released from restrictions 12,394 (954) 11,440 (11,440) — — —

Total revenues, gains, and othersupport 25,063 (1,592) 23,471 (3,339) 1,054 21,186 5,933

Expenses:

Program services:

Design and construction 4,741 — 4,741 — — 4,741 5,883

Horticulture, maintenance, and operations 8,963 — 8,963 — — 8,963 8,918

Visitor services 2,056 — 2,056 — — 2,056 3,446

Total program services 15,760 — 15,760 — — 15,760 18,247

Supporting services:

Fund- raising 3,473 — 3,473 — — 3,473 3,719

Management and general 2,874 — 2,874 — — 2,874 2,468

Total supporting services 6,347 — 6,347 — — 6,347 6,187

Total expenses 22,107 — 22,107 — — 22,107 24,434

Excess (deficiency) of revenues, gains,and other support over expenses 2,956 (1,592) 1,364 (3,339) 1,054 (921) (18,501)

Change in donor designation — — — (136) 136 — —

(Decrease) increase in net assets 2,956 (1,592) 1,364 (3,475) 1,190 (921) (18,501)

Net assets at beginning of year 6,061 19,314 25,375 32,359 42,127 99,861 118,362

Net assets at end of year 9,017 17,722 26,739 28,884 43,317 98,940 99,861

See accompanying notes to financial statements.

Operations

Designatedfor long-terminvestment

Totalunrestrictednet assets

Temporarilyrestrictednet assets

Permanentlyrestrictednet assets 2002 2001

Totals

Unrestricted net assets

$

$

June 30, 2002 and 2001(Dollars in thousands)

ASSETS 2002 2001Cash 136 101Short-term investments (note 3) 15,882 16,997Accounts receivable 2,024 3,046Prepaid expenses and other assets 289 267Contributions receivable, net (note 4) 7,029 3,519Other investments (note 3) 74,051 76,885Investments held under split interest agreements 206 85Fixed assets, net (note 5) 1,096 1,472

Total assets 100,713 102,372

LIABILITIES AND NET ASSETS

Liabilities:Accounts payable and accrued expenses 1,642 2,324Deferred revenue (note 11) — 130Liabilities under split interest agreements 131 57

Total liabilities 1,773 2,511Commitments and contingencies (note 10)

Net assets:Unrestricted:Available for operations 9,017 6,061Designated for long-term investment (note 6) 17,722 19,314

Total unrestricted 26,739 25,375Temporarily restricted (note 6) 28,884 32,359Permanently restricted (note 6) 43,317 42,127

Total net assets (includes donor and board-designatedendowments of $78,681 in 2002 and $80,624 in 2001) 98,940 99,861

Total liabilities and net assets 100,713 102,372


CENTRAL PARK CONSERVANCY, INC.BALANCE SHEETS

$

$

$

$

14

FINA

NCES

17

CENTRAL PARK CONSERVANCY, INC.STATEMENTS OF CASH FLOWSYears ended June 30, 2002 and 2001(Dollars in thousands)

2002 2001Cash flows from operating activities:

Decrease in net assets $ (921) (18,501)Adjustments to reconcile decrease in net assets to

net cash used in operating activities:Depreciation and amortization 573 522Change in unrealized (gain) loss on investments (3,085) 23,960Net loss (gain) on sale of investments 9,452 (5,654)Accretion of interest and amortization of premiums (2,238) (2,061)Change in value of split interest agreements (4) (9)Permanently restricted contributions classified

as financing activities (1,573) (1,459)Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable 1,022 (1,871)Increase in prepaid expenses and other assets (22) (114)(Increase) decrease in contributions receivable (3,510) 1,118Decrease in accounts payable and accrued expenses (682) (676)Decrease in deferred revenue (130) (301)

Net cash used in operating activities (1,118) (5,046)Cash flows from investing activities:

Proceeds from sale of investments 64,190 44,902Purchases of investments (64,370) (41,461)Acquisition of fixed assets (197) (727)

Net cash (used in) provided by investing activities (377) 2,714Cash flows from financing activities:

Permanently restricted contributions, net of change inrelated receivable 1,573 2,654

Repayment of letter of credit — (300) Net investment in split interest agreements (43) (19)

Net cash provided by financing activities 1,530 2,335

Net increase in cash 35 3

Cash at beginning of year 101 98

Cash at end of year $ 136 101


FINA

NCES

16

CENTRAL PARK CONSERVANCY, INC.STATEMENT OF ACTIVITIESYear ended June 30, 2001(Dollars in thousands)

Revenues, gains, and other support:

Contributions 6,801 1,797 8,598 3,092 1,459 13,149

Revenue from the City of New York:

Contract revenue (note 12) 2,778 — 2,778 — — 2,778

Project revenue — — — 924 — 924

Special events revenue 1,087 — 1,087 2,053 — 3,140

Less expenses incurred for special events (357) — (357) (391) — (748)

730 — 730 1,662 — 2,392

Interest and dividends, net of investment expenses of $502 1,155 300 1,455 2,504 — 3,959

Net gain on sale of investments — 1,563 1,563 3,476 615 5,654

Change in unrealized gain (loss) on investments — (6,680) (6,680) (14,689) (2,591) (23,960)

Change in value of split interest agreements — — — (9) — (9)

Other (note 8) 1,046 — 1,046 — — 1,046

Total revenues, gains, and losses 12,510 (3,020) 9,490 (3,040) (517) 5,933

Net assets released from restrictions:

Contributions, other revenues, and gains 11,665 242 11,907 (11,907) — —

Administrative cost recovery 902 — 902 (902) — —

Total net assets released from restrictions 12,567 242 12,809 (12,809) — —

Total revenues, gains, and other support 25,077 (2,778) 22,299 (15,849) (517) 5,933

Expenses:

Program services:

Design and construction 5,883 — 5,883 — — 5,883

Horticulture, maintenance, and operations 8,918 — 8,918 — — 8,918

Visitor services 3,446 — 3,446 — — 3,446

Total program services 18,247 — 18,247 — — 18,247

Supporting services:

Fund- raising 3,719 — 3,719 — — 3,719

Management and general 2,468 — 2,468 — — 2,468

Total supporting services 6,187 — 6,187 — — 6,187

Total expenses 24,434 — 24,434 — — 24,434

Excess (deficiency) of revenues, gains,and other support over expenses 643 (2,778) (2,135) (15,849) (517) (18,501)

Change in donor designation — — — (288) 288 —

(Decrease) increase in net assets 643 (2,778) (2,135) (16,137) (229) (18,501)

Net assets at beginning of year 5,418 22,092 27,510 48,496 42,356 118,362

Net assets at end of year 6,061 19,314 25,375 32,359 42,127 99,861


Operations

Designated forlong-term

investment

Totalunrestrictednet assets

Temporarilyrestricted net

assets

Permanentlyrestricted net

assets Totals

Unrestricted net assets

$

$

FINA

NCES

19

CENTRAL PARK CONSERVANCY, INC .SCHEDULE OF FUNCTIONAL EXPENSESYear ended June 30, 2002(With comparative totals for 2001)(Dollars in thousands)

Supporting services

Salaries $ 1,287 1,530 2,817 9,926 10,000Payroll taxes and employee benefits 350 343 693 2,289 2,099

Total salaries and related expenses 1,637 1,873 3,510 12,215 12,099

Contracted services:Construction and design 2 51 53 3,381 3,980Landscape — — — 344 248Consulting 144 164 308 467 1,048Mailings 210 2 212 212 389Other 232 120 352 531 1,134

Total contracted services 588 337 925 4,935 6,799

Materials, equipment, and supplies 54 26 80 1,635 2,159Printing and publications 241 66 307 372 695Conferences, conventions, and meetings 46 23 69 99 92Postage, shipping, and messenger 174 41 215 227 328Travel 2 3 5 10 16Equipment maintenance and rentals 166 64 230 454 143Insurance 34 25 59 178 148Occupancy 273 151 424 518 414Advertising 5 18 23 34 —Miscellaneous 65 127 192 280 467Contributed services 49 49 98 577 552

1,109 593 1,702 4,384 5,014

Total expenses before depreciation and amortization 3,334 2,803 6,137 21,534 23,912

Depreciation and amortization 139 71 210 573 522

Total expenses – 2002 $ 3,473 2,874 6,347 22,107

Total expenses – 2001 $ 3,719 2,468 6,187 24,434

Schedule 1

Fund-raising

Managementand

general Total

Totalexpenses

2002

Totalexpenses

2001

FINA

NCES

18

CENTRAL PARK CONSERVANCY, INC .SCHEDULE OF FUNCTIONAL EXPENSESYear ended June 30, 2002(With comparative totals for 2001)(Dollars in thousands)

Program services

Salaries $ 583 5,376 1,150 7,109Payroll taxes and employee benefits 158 1,175 263 1,596

Total salaries and related expenses 741 6,551 1,413 8,705

Contracted services:Construction and design 3,028 300 — 3,328 Landscape — 344 — 344 Consulting 16 32 111 159 Mailings — — — — Other 3 111 65 179

Total contracted services 3,047 787 176 4,010

Materials, equipment, and supplies 568 944 43 1,555 Printing and publications 14 18 33 65 Conferences, conventions, and meetings 3 22 5 30 Postage, shipping, and messenger 2 6 4 12 Travel 1 1 3 5 Equipment maintenance and rentals 89 97 38 224 Insurance 36 66 17 119 Occupancy 18 35 41 94 Advertising — 11 — 11 Miscellaneous 9 54 25 88Contributed services 162 159 158 479

902 1,413 367 2,682

Total expenses before depreciation and amortization 4,690 8,751 1,956 15,397

Depreciation and amortization 51 212 100 363

Total expenses – 2002 $ 4,741 8,963 2,056 15,760

Total expenses – 2001 $ 5,883 8,918 3,446 18,247

Schedule 1

Design andConstruction

Horticulture,maintenance,and operations Visitor services Total

FINA

NCES

21

CENTRAL PARK CONSERVANCY, INC.NOTES TO FINANCIAL STATEMENTSJune 30, 2002 and 2001(Dollars in thousands)

(1) ORGANIZATION

Central Park Conservancy, Inc. (the Conservancy) is a not-for-profit organizationincorporated under the laws of New York State and is a tax-exempt organization under theInternal Revenue Code.

The Conservancy is funded primarily from contributions made by individuals, corporations,and foundations within the Metropolitan area, as well as project and contract revenue fromthe City of New York/Department of Parks and Recreation. These contributions are used tofund major capital improvements, provide horticultural care and maintenance, and offerprograms for volunteers and visitors of Central Park.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(A) BASIS OF ACCOUNTING

The accompanying financial statements have been prepared on the accrual basis.

(B) BASIS OF PRESENTATION

Net assets and revenues, expenses, gains, and losses are classified based on the existenceor absence of donor-imposed restrictions. Accordingly, the net assets of theConservancy and changes therein are classified and reported as follows:

UNRESTRICTED NET ASSETS – Net assets that are not subject to donor-imposedrestrictions.

TEMPORARILY RESTRICTED NET ASSETS – Net assets subject to donor-imposedrestrictions that will be met either by actions of the Conservancy and/or thepassage of time.

PERMANENTLY RESTRICTED NET ASSETS – Net assets subject to donor-imposedrestrictions that they be maintained permanently by the Conservancy. Generally,the donors of these assets permit the Conservancy to use all or part of the incomeearned on related investments for general or specific purposes.

Revenues, gains, and other support are reported as increases in unrestricted net assetsunless their use is limited by explicit donor-imposed restrictions or by law. Expenses arereported as decreases in unrestricted net assets. Gains and losses on investments andother assets or liabilities are reported as increases or decreases in unrestricted net assetsunless their use is restricted by explicit donor stipulation or by law. Expirations oftemporary restrictions on net assets (i.e., the donor-imposed stipulated purpose has beenfulfilled and/or the stipulated time period has elapsed) are reported as net assetsreleased from restrictions.

Continued

FINA

NCES

20

CENTRAL PARK CONSERVANCY, INC.FINANCIAL STATEMENTS AND SCHEDULEJune 30, 2002 and 2001

INDEPENDENT AUDITORS’ REPORT

The Board of TrusteesCentral Park Conservancy, Inc.:

We have audited the accompanying balance sheets of Central Park Conservancy, Inc. (theConservancy) as of June 30, 2002 and 2001, and the related statements of activities and cashflows for the years then ended. These financial statements are the responsibility of theConservancy’s management. Our responsibility is to express an opinion on these financialstatements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects,the financial position of Central Park Conservancy, Inc. as of June 30, 2002 and 2001, and thechanges in its net assets and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplementary information included in schedule 1 is presented forpurposes of additional analysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the 2002 basicfinancial statements and, in our opinion, is fairly stated in all material respects in relation to the2002 basic financial statements taken as a whole.

September 20, 2002

KPMG, LLP


(I) FUNCTIONAL ALLOCATION OF EXPENSES

The costs of providing the various programs and other activities of the Conservancyhave been summarized on a functional basis in the statements of activities.Accordingly, certain costs have been allocated among the programs and supportingservices benefited.

(J) RECLASSIFICATIONS

Certain amounts in the 2001 financial statements have been reclassified to conformwith the 2002 presentation.

(3) INVESTMENTS

A summary of investments at June 30, 2002 and 2001 is as follows:Fair value

2002 2001Short-term investments – cash equivalents $ 15,882 16,997Other investments:

Money market and mutual funds $ 2,127 4,188U.S. treasury bonds and notes 41,003 39,431U.S. government agencies — 3,390Common stocks 30,921 29,876

$ 74,051 76,885

The Conservancy maintains an investment pool for certain investments. The Conservancy’sboard of trustees has authorized a policy designed to preserve the value of these pooledinvestments in real terms (after inflation) and provide a predictable flow of funds to supportoperations. This policy permits the use of total return (interest, dividends, and realized andunrealized gains and losses, net of investment management fees) on pooled assets at a rate(spending rate) of up to a maximum of 6% applied to a moving average of the value of theinvestment pool as of December 31 of the three previous years. In fiscal 2002 and 2001, theConservancy utilized 5% of the total return.

Continued

FINA

NCES

23

FINA

NCES

22


(C) OPERATIONS

The Conservancy includes in operations all expenses and unrestricted revenues, gains,and other support (amounts released from restrictions), except for bequests andinvestment return on pooled investments, which are classified as designated for long-term investment.

(D) CONTRIBUTIONS

Contributions, which include unconditional promises to give (pledges), are recognizedas revenues in the period received. Conditional promises to give are not recognizeduntil they become unconditional, that is, when the future and uncertain event onwhich they depend has occurred.

(E) INVESTMENTS

Investments are carried at fair value. Fair value is based on published market prices.Donated securities are measured at fair value at the date of the contribution.

(F) FIXED ASSETS

Fixed assets are recorded at cost. Furniture and equipment are depreciated using thestraight-line method over their estimated useful lives. Leasehold improvements areamortized over the term of the lease or life of the asset, whichever is shorter.

(G) SPLIT-INTEREST AGREEMENTS

The Conservancy’s split-interest agreements with donors consist primarily of charitablegift annuities and irrevocable charitable remainder trusts for which the Conservancyserves as trustee. Assets are invested and payments are made to donors and/or otherbeneficiaries in accordance with the respective agreements.

Contribution revenue for charitable gift annuities and charitable remainder trusts isrecognized at the date the agreement is established, net of the liability recorded for thepresent value of the estimated future payments to be made to the respective donorsand/or other beneficiaries.

The present value of payments to beneficiaries of charitable gift annuities andcharitable remainder trusts is calculated using discount rates which represent the risk-free rates in existence at the date of the gift. Gains or losses resulting from changes inactuarial assumptions and accretions of the discount are recorded as increases ordecreases in the respective net asset class in the accompanying statements of activities.

(H) USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingencies at the date of the financial statements and the reportedamounts of revenues and expenses during the reporting period. Actual results coulddiffer from those estimates.

Continued

FINA

NCES

25


DONOR AND BOARD-DESIGNATED ENDOWMENTS

Donor and board-designated endowments included in unrestricted, temporarily restricted,and permanently restricted net assets at June 30, 2002 and 2001 are as follows:

2002 2001Net asset classes:

Board-designated endowments:Unrestricted – designated for long-term investment $ 17,722 19,314Temporarily restricted – designated for long-term investment 17,642 19,183Donor endowments:

Permanently restricted 43,317 42,127$ 78,681 80,624

(7) LOAN PAYABLE

The Conservancy has available a $1,000 line of credit from JPMorgan Chase Bank (the Bank).

The line of credit is available for renewable one-year periods unless terminated by the Bankor the Conservancy. Interest will accrue at either the Bank’s prime rate or at a fixed rate(based on money market rate) quoted by the Bank for 30, 60, or 90 days, at theConservancy’s option at the time of borrowing. No amounts were outstanding under thisline of credit at June 30, 2002 and 2001.

(8) CONTRIBUTED SERVICES AND FACILITIES

The Conservancy receives contributed legal advice, office space, and utilities. The value ofthese services is recorded in the Conservancy’s financial statements and is included as otherrevenue and allocated to functional expenses in the statements of activities in the amount of$577 and $552 in 2002 and 2001, respectively.

In addition, many individuals have volunteered their time to the Conservancy. The value ofthese services is not included in the accompanying financial statements.

(9) RETIREMENT PLAN

The Conservancy has a defined contribution retirement plan (the Plan) under Section403(b) of the Internal Revenue Code in which all employees, as defined, are eligible toparticipate. Participants may make voluntary contributions, subject to plan limitations, to beapplied toward the purchase of retirement annuities. The Conservancy is obligated to matchemployee contributions up to a maximum of 5% of the employee’s basic compensation, forall eligible employees as defined. For the years ended June 30, 2002 and 2001, theConservancy contributed $332 and $284, respectively, to the Plan on behalf of itsemployees. All contributions vest immediately.

Continued

FINA

NCES

24


(4) CONTRIBUTIONS RECEIVABLE

Contributions receivable at June 30, 2002 are due to be collected as follows:Amount

Year ending June 30:2003 $ 4,8712004 1,8542005 1852006 1752007 83

2008 and thereafter 261Less allowance for doubtful contributions

receivable (400)$ 7,029

(5) FIXED ASSETS

A summary of fixed assets at June 30, 2002 and 2001 is as follows:Estimated

2002 2001 useful livesFurniture and fixtures $ 378 378 5 to 10 yearsOffice equipment 2,059 1,887 3 yearsLeasehold improvements 402 402 10 years

2,839 2,667Less accumulated depreciation and amortization (1,743) (1,195)

$ 1,096 1,472

(6) NET ASSETS

TEMPORARILY RESTRICTED NET ASSETS

Temporarily restricted net assets are available for the following purposes at June 30, 2002 and 2001:

2002 2001Design and construction $ 8,279 4,411Horticulture, maintenance, and operations 18,207 26,889Visitor services 2,398 1,059

$ 28,884 32,359

PERMANENTLY RESTRICTED NET ASSETS

Permanently restricted net assets are restricted to investment in perpetuity, the income fromwhich is expendable to support the following purposes at June 30, 2002 and 2001:

2002 2001Horticulture, maintenance, and operations $ 35,929 34,101Visitor services 3,942 4,396General purposes 3,446 3,630

$ 43,317 42,127

Continued

FINA

NCES

27


Under this contract, the Conservancy is also entitled to a portion of net concession revenueearned in Central Park. The Conservancy receives 50% of net concession revenue earned inexcess of $6,000, measured as of the prior fiscal year, capped at a maximum of $2,000 peryear. Additional revenue received by the Conservancy was $677 and $477 for the yearsended June 30, 2002 and 2001, respectively. Total payments per year from this contract willbe limited to a maximum obligation of $4,000 in any one year. The contractual arrangementmay only be terminated under specific conditions outlined in the agreement.

Revenue in connection with this contract is recognized by the Conservancy as expendituresare made for specific services. The excess of amounts received from this contract overexpenditures incurred is reflected as deferred revenue in the accompanying balance sheets.The changes in deferred revenue during 2002 and 2001 are as follows:

2002 2001Balance at beginning of year $ 130 431Amounts received from the City of

New York/Department of Parks and Recreation (including receivable of $892 and $1,326 in 2002 and 2001, respectively) 2,677 2,477

Amounts expended for specific services related to the contract (2,807) (2,778)

Balance at end of year $ — 130

FINA

NCES

26


(10) COMMITMENTS AND CONTINGENCIES

LEASE

The Conservancy has a lease agreement for office space in New York City expiring in 2008.Annual lease payments include minimum base rent subject to escalation charges and aproportionate share of any increase in real estate taxes. The Conservancy received a rentabatement for the first four months of the lease. Rent expense each year is based on thetotal lease commitment recognized over the life of the lease on a straight-line basis. Adeferred rent obligation, $99 in 2002 and $100 in 2001, included in accounts payable andaccrued expenses, has been established for the cumulative difference between rent expenserecognized and the amounts paid on the lease.

Future minimum lease payments are as follows:Amount

Year ending June 30:2003 $ 3092004 3262005 3262006 3262007 326

Thereafter 326$ 1,939

Rent expense for each of the years ended June 30, 2002 and 2001 was $307.

OTHER

The Conservancy is involved in various claims and legal actions arising in the ordinarycourse of business. In the opinion of the Conservancy’s management, the ultimatedisposition of these matters will not have a material adverse effect on the Conservancy’sfinancial condition.

(11) CONTRACT REVENUE

In February 1998, the Conservancy entered into a renewable eight-year managementcontract with the City of New York and the Department of Parks and Recreation, whichsuperseded a Memorandum of Understanding in effect between the parties. Commencing onJuly 1, 1997, in order to be entitled to payments from the Department of Parks andRecreation, the Conservancy must raise and expend annually a minimum of $5,000 formaintenance and repairs, public programs, landscaping and rehabilitation, or repair ofexisting facilities, subject to certain exclusions. In exchange for meeting those requirements,the Department of Parks and Recreation will pay the Conservancy a minimum of $1,000,which is required by contract to be expended for specific services. This minimum paymentcan be increased up to a maximum of $2,000 by formula, based on the amount by which theConservancy exceeds its $5,000 threshold in any one year.

Continued

29

Peter J. PowersPresident & CEOPowers Global Strategies

Marguerite H. Purnell

Clifton S. RobbinsPartnerGeneral Atlantic Partners, LLC

Joe L. RobyChairman Emeritus &

Senior AdvisorCredit Suisse First Boston

Gerald A. RosenbergPartnerRosenman & Colin

Howard J. RubensteinPresidentRubenstein Associates, Inc.

Eric RudinExecutive Vice PresidentRudin Management Co.

Rae Paige Schwarz

Norman C. SelbyPresident & CEOTransForm Pharmaceuticals, Inc.

Michael A. SteinbergPresidentSteinberg Asset Management

Co., Inc.

Erana M. StennettBloomberg

Stuart SubotnickExecutive Vice PresidentMetromedia Company

John L. TishmanChairman & CEOTishman Realty &

Construction Co.

Elizabeth R. VaretChairmanAmerican Securities, L.P.

Phyllis Cerf Wagner

Ali E. WamboldManaging DirectorLazard Frères & Co. LLC

William S. BeineckeAntaeus Enterprises, Inc.

Lewis W. BernardMorgan Stanley Dean Witter

James H. Evans

Nathan L. Halpern

Henry R. KravisFounding PartnerKohlberg Kravis Roberts & Co.

Ira M. Millstein, Esq.Senior PartnerWeil, Gotshal & Manges LLP

Laurance S. Rockefeller

Elizabeth Barlow RogersDirector of Garden History

and Landscape StudiesBard Graduate Center

E. John Rosenwald, Jr.Vice ChairmanBear, Stearns & Co. Inc.

Arthur RossVice ChairmanCentral National-Gottesman Inc.

Joan C. Schwartz

A.J.C. SmithChairman

William M. Lewis, Jr.Vice Chairman

Kenneth H. Heitner, Esq.Secretary & General Counsel

Michael GrobsteinTreasurer

LIFE TRUSTEES OFFICERS

BOA

RDO

F TRU

STEES

Erana M. Stennett

Joe Roby

Jean Taylor & Bill Golden

BOA

RDO

F TRU

STEES

28

CHAIRMAN

A.J.C. SmithDirectorMarsh & McLennan Incorporated

Judy Hart Angelo

Jane BayardExecutive Vice PresidentAshforth Warburg Associates

Hon. Adrian Benepe, ex officioCommissionerCity of New York/Parks &

Recreation

Candice Bergen

Doug Blonsky, ex officioChief Operating OfficerCentral Park Administrator

Howard L. Clark, Jr. Vice ChairmanLehman Brothers

Jean Clark

Suzanne Cochran, ex officioPresident, Women’s CommitteeCentral Park Conservancy

Norma T. Dana

Gordon J. Davis, Esq.Senior PartnerLeBoeuf, Lamb, Green &

MacRae, LLP

Henry J. Ferrero, Jr.Group Managing PartnerDeloitte & Touche, LLP

Hon. C. Virginia Fields, ex officioManhattan Borough President

Patricia Fili-KrushelExecutive Vice President,

AdministrationAOL Time Warner Inc.

Richard GilderPartnerGilder Gagnon Howe & Co. LLC

William T. Golden

Michael GrobsteinRetired Vice ChairmanErnst & Young

William B. Harrison, Jr.Chairman and CEOJP Morgan Chase & Company

Kenneth H. Heitner, Esq.PartnerWeil, Gotshal & Manges LLP

Robert J. HurstVice ChairmanGoldman Sachs & Co.

Michael JanickiManaging PartnerThe Jan Consulting Group

Kay KoplovitzChairmanBroadway Television Network

Sheila C. Labrecque

Evelyn H. LauderSenior Corporate Vice PresidentThe Estée Lauder Companies Inc.

Edward LewisChairman & CEOEssence Communications

Partners

William M. Lewis, Jr.Managing DirectorMorgan Stanley & Company

Jay P. MandelbaumExecutive Vice PresidentBank One

Lynden B. MillerLynden B. Miller Public

Garden Design

Madeleine MoorePresidentMoore Creative Marketing

Kenneth S. Olshan

Regina S. PeruggiPresidentCentral Park Conservancy

FISCAL YEAR OF 2001AS OF OCTOBER 2002

Howard Clark, Jr.

Gordon Davis

Robert Hurst

Carolyn & Bill Lewis

Bill Beinecke, Ian Smith, Ira Millstein, Jim Evans

CEN

TRA

L PARK

CO

NSER

VA

NCY

STAFF A

ND

VOLU

NTEERS

54

CENTRAL PARK CONSERVANCY

MANAGEMENT

Regina S. PeruggiPresident

Douglas BlonskyCentral Park AdministratorChief Operating Officer

Neil CalvaneseVice President for Operations

Melanie FormanVice President for Development

Christopher NolanVice President for Capital

Projects

Stephen SpinelliVice President for Finance &

Administration

NYC/Parks & RecreationNelson NicholasDeputy Chief of Central Park

Operations


STAFF

Belinda AdefioyeRegina AlvarezEric AndersonPedro AugustoAlice BaerClaude BarilleauxAndre BarnesLarry BaskervilleJulia BastickLariena BellRobert BennettEd BensonWilliam BerlinerJairam BisessarDouglas BlonskyRonald BoerkeAshley Mills BohnenSusan BoudreauPierre BouleeJill Bristow

Floyd BrownSamantha BurwickNeil CalvaneseMartin CalzadillaRudolfo CapoteKelly CarrolTeresa CartaStella CespedesDavid ChadwickTia ChapmanKea CheaJennifer ChernowskiJesse CohenWalter CollierMiguel ColonBrian ConatyVictor CorporanRonise CoxKathleen CreggLawrence DeckerQuezon Dela CruzCathy DeutschBeth DonovanRaymond DugganKathryn DwyerJames EgglestonMilton EvoraMarvin FergusonRobert FergusonJose FigueroaJames FlemingMelanie FormanJulie FortierWendy FortuneLaura FrankRussell FredericksHector GamboaElizabeth GillespieEllen GoldsteinWilliam GrahamJessica GreeneJohn GriffithMargarita HaasAnne HaganBeth HaskellMaria HernandezNereida HernandezAnnamarie HessmanLinda HeywardAndrea HillJohn Hiser

Rith HunMichael HundleyVuthy InHoward JamesonNadiege JeanLouis JohnsonRandolph JosephSotha KangAdam KaufmanJohn KeenanSheila KendallVanthon KeoYean KhievElizabeth KohlerEric KohlerAndrew KonopkaGerman LaverdeRichard LeeDaisy LegareJose LeonRichard LepkowskiGregory LewisAlice LichtensteinWayne LightyKeiron LindsayFrancisco LunaSuntov LyIda LynchGlenn MaccioliBlaine MaleyKatharine MarksMildred MartinezEarl MaysJoseph McBainDerrick McElveenMilton McFarlaneJim McGeeThurman McLambGeorge McPhersonLisa MeadowcroftSara Cedar MillerAngel MogollonCornelio MoraJuan MorellJamel MoserGiovanni MosqueraEarl MunroeCheryl NeldonAntonio NievesChristopher NolanSteven Norton

Marcelyn O'DellCharles OberyVi OngJohn OquendoKathryn OrtizAlicia PaezPedro PaganCatherine ParryPedro PeraltaMauricio PerdomoJoaquim PereiraJoseph PerezMuneshwar PersaudRegina S. PeruggiAmado PhillipsAnthony PontilloWilliam QuansahJohn ReddickJames ReedSergio RicanoJose RodriguezDarren RogersEve RothenbergRonald SandersDiane SchaubGerman SedaChristine SeitaBill SelezniovPaul SerraCheryl SharrieffLynn ShewardStuart ShillaberJudith SigmoneStacy SitJames P. SmithJames T. SmithLinton SmithKhol SokNorma SotoThan SounStephen SpinelliNicole SpringerVictor StephensonMartha SullivanPhen SuyPhin SuyLaura TakasakiReginal TartPaul TeyeLydia ThomasYolanda Torres

Aldo TortorelliTrung Van TruongDavid TurnerLouis Urruttia-OrmeJuan ValentinRichard van ValkenburgJuan VargasSamuel VargasMario VaughanDario VeraldiDaniel WallaceStephanie WattersStephen WattersWallace WentinkRobert WheartyMaryann WilliamsMildred WolkowDerrick WoodburyMario ZafaranaPaola ZanzoJonathan Zelkind

NYC/PARKS & RECREATION

STAFF

Mamie GreenPark Supervisor

Michael RyanPark Supervisor

Zully ZurheidePark Supervisor


VOLUNTEERS [10 OR MORE

YEARS OF SERVICE]Maureen AntizzoLee BarashMiriam BerkeRich Bigliano Margery BloomCarmela CaputoBerton ChernizerLorraine ColpittsFrank ComiskyAbraham DenowitzRita DenowitzAbdul El-AminElinor FinePhyllis GiarroLawrence HeroldRichard HooperJoyce JacobsAnne KramerLouise KrugerDr. Richard LeedsBernard MarksJulia MorrisonMarjorie NaughtonAnni NewbeckMartin PincusStephen ReichertLouise RansomMarie RenoRenee SnyderDeborah Ann SolomonBarbara StonecipherHerb TandlichPhyllis TandlichDoria TencaFern StolperNancy Warfield

CREDITS

Design: Patty & Toshi, New York City, www.pattyandtoshi.com

Assistant Producer: Jessica Greene

Writer: Rick Lepkowski

Editors: Alice Baer, Laura Frank, Eve Rothenberg

Photos: Rhea Anna, Buffalo, NY, www.RheaAnna.com

Sara Cedar Miller, Historian and Photographer, Central Park Conservancy

Nannarrup hoffmani courtesy of Dr. Donatella Foddai, University of Padov, Italy,

Asian Longhorned Beetle courtesy of the USDA Forest Service,

North Central Research Station, St. Paul, MN

Printed on recycled paper.

14 East 60th Street, New York, NY 10022

www.centralparknyc.org

PARK CENTRAL MANYassets.centralparknyc.org/pdfs/annual-reports/2002-report.pdf · QUESTIONING FACE...

Documents

Transcript of PARK CENTRAL MANYassets.centralparknyc.org/pdfs/annual-reports/2002-report.pdf · QUESTIONING FACE...