Image provided by: The Confederated Tribes of Warm Springs; Warm Springs, OR
About Spilyay tymoo. (Warm Springs, Or.) 1976-current | View Entire Issue (May 4, 2000)
SPILYAY tymoo WARM SPRINGS, OREGON May 4, 2000 9 t Warm Springs Forest Products 1999 Annual Report 1 1 "I 'it-' - : -.- : ; i Larry Potts WSFPI General Manager Mike Clements WSFPI Board Chairman r ! " .. ur . f ' . V.," T. -. , J '" . - ' ..'-W J ':..';.;'.'.V''? St v J' Ik r faJ ' All flHM' 4 kMtfMM Gene Keane WSFPI Board Member John Katchia WSFPI Board Vice-Chairman Jim Manion WSFPI Board Secretary-Treasurer Randy Smith WSFPI Board Member Bob Macy WSFPI Board Member Enos Herkshan WSFPI Board Member Balance sheet and Profit & Loss statement The condensed financial information presented below has been derived from the Enterprise's audited financial statements for the years ended December 31, 1999 and 1998. A copy of the audited financial statements and independent auditor's report, which expressed an opinion that those statements were presented, in all material respects, in conformity with generally accepted accounting principles, is available upon request at the Enterprise's office or by mail at P.O. Box 810, Warm Springs, OR 97761. Assets Financial statements- DECEMBER 31, Measurement focus and basis of accounting-The Enterprise is a propriety fund of the Tribe. The Enterprise utilizes the flow of economic resources measurement focus whereby all assets and liabilities associated with the operation of the Enterprise are included in the balance sheet. The Enterprise is accounted for utilizing the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded at the time they are earned. Expenses are recorded at the time liabilities are incurred. The Enterprise has applied all Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict Governmental Accounting Standards Board pronouncements. Method of doing business with the Tribe-Enterprise plan facilities are primarily located on Tribal lana for which no rent is currently charged. Under a timber cutting contract with the Tribe, the Enterprise has the exclusive right to purchase timber on the Warm Springs Reservation (see Note 2). Retained earnings from Enterprise operations are maintained by the Enterprise to the extent they are required for operating capital or for the payment of indebtedness, maintainance, repair and replacement or expansion of property, plant and equipment. Any excess funds are required by the approved Plan of Operations to be available to the Tribe for such uses and purposes as the Tribe shall consider appropriate. Distributions are made to the Tribe in the form of dividends. Dividends cannot be paid directly to Tribal members. Note 2-Stumpage Substantially afl of the Enterprise's stumpage is to be purchased from the Tribe pursuant to a cutting contract that was signed on March 17, 1992. This contract requires a cut of between 44.7 ana 57.0 million board feet for the years 1998 through 2001, with an allowable annual variance of ten percent and an allowable five percent variance from definea volumes for the five-year period 1997-2001. Prices for stumpage are to be based on negotiated log market values less defined deductions. Stumpage purchased from the Tribe totaled 56.533 million board feet and $13,478,678 in 1999, and 57.835 million board feet and $10,929,999 in 1998. Of stumpage purchased, approximately 53.411 million board feet in 1999 and 53.762 million board feet in 1998, was chargeable to the annual cut under the cutting contract. At December 31, 1999 and 1998, the Enterprise had accrued stumpage payable to the Tribe of $9,928 and $1,177,295, respectively. r J0 4 . ? -5 f V k, . - !V,V 1 Lrj '-J 4 r CURRENT ASSETS Cash and cash equivalents Investments Accounts receivable Current portion of notes receivable Inventories Prepaid expenses Total current assets PROPERTY, PLANT AND EQUIPMENT, at cost, less accumulated depreciation NOTES RECEIVABLE, less current portion, net 1999 1998 $ 497,990 $ 933,477 2,185,733 2,088,206 1,312,555 1,861,161 354,000 11,715,311 9,155,785 163,313 91,757 16,228,902 14,130,386 18,985,187 20,430,586 1,658,717 - $ 36,872,806 $ 34,560,972 Liabilities and Retained Earnings CURRENT LIABILITIES Notes payable Accounts payable Stumpage and logging costs payable Accrued expenses Total current liabilities COMMITMENTS (Note 14) RETAINED EARNINGS $ 1,084,966 1,762,105 659,887 949,508 4,456,466 32,416,340 $ 36,872,806 $ 1,504,188 790,168 1,659,530 931,769 4,885,655 29,675,317 $ 34,560,972 Statement of Income YEAR ENDED DECEMBER 31, NET SALES COST OF GOODS SOLD Raw material costs Manufacturing costs Gross profit Selling, general and administrative expenses OPERATING INCOME (LOSS) OTHER INCOME (EXPENSE) Interest and dividend income Other investment earnings (losses), net Interest expense Other income (expense), net NET INCOME (LOSS) 1999 1998 $53,304,329 $41,437,490 (36,930,180) (29,758,897) (12,453,783) (11,022,348) 3,920,366 656,245 (1,482,899) (1,454,847) 2,437,467 (798,602) 335,012 132,479 (30,121) 124,045 (32,947) (51,428) 31,612 (287,366) 303,556 (82,270) 2,741,023 (880,872)