longue vue house and gardens...

LONGUE VUE HOUSE AMP GARDENS CORPORATION NEW ORLEANS. LOUISIANA

' FINANCIAL STATEMENTS

DECEMBER 31.2013 AND 2012

IjflKll Postlethwaite afiillkl & Netterville

A Professional Accounting Corporation

www.pncpa.com

LONGUE VUE HOUSE AND GARDENS CORPORATION NEW ORLEANS, LOUISIANA

FINANCIAL STATEMENTS

DECEMBER 31,2013 AND 2012

TABLE OF CONTENTS

INDEPENDENT ACCOUNTANTS' REPORT

FINANCIAL STATEMENTS

1-2

Statements of Financial Position 3

Statements of Activities 4-5

Statement of Functional Expenses: Year Ended December 31,2013 6

Statement of Functional Expenses: Year Ended December 31,2012 7

Statements of Cash Flows 8

NOTES TO FINANCIAL STATEMENTS 9-18

SUPPLEMENTARY INFORMATION 19

Schedule I — Admissions and Ground Fees

Schedule II — Sentimental Journeys Auction Revenue

SCHEDULE OF FINDINGS AND OUESTIONED COSTS 20-21

iTrcSyl Postlethwaite E&fiU & Netterville

A Professional Accounting Corporation Associated Offices in Principal Cities of the United States

www.pncpa.com

INDEPENDENT ACCOUNTANTS' REPORT

To the Board of Directors of Tongue Vue House and Gardens Corporation New Orleans, Louisiana

We have reviewed the accompanying statement of financial position of Tongue Vue House and Gardens Corporation (a nonprofit organization) (the Corporation) as of December 31, 2013, and the related statements of activities, functional expenses, and cash flows for the year then ended. A review includes primarily applying analytical procedures to management's financial data and making inquiries of the Corporation's management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

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 designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

Our review was made primarily for the purpose of expressing a conclusion that there are no material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. The supplementary information for the year ended December 31, 2013 included in the accompanying Schedules I and n is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements, and we did not become aware of any material modifications that should be made to such information.

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30th Floor - Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel: 504.569.2978 OneGalleria Blvd., Suite 2100 • Metairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609

The financial statements for the year ended December 31, 2012, were audited by us, and we expressed an unmodified opinion on them in our report dated June 21, 2013. In addition, the supplementary information for the year ended December 31, 2012, contained in Schedules I and II, was subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciliag such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. Our report stated that the information was fairly stated in all material respects in relation to the financial statements as a whole. We have not performed any auditing procedures on either the financial statements or on the supplementary information since June 21, 2013.

Metairie, Louisiana June 30, 2014

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LQNGUE VUE HOUSE AND GARDENS CORPORATION

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31.2013 AND 2012 (SEE INDEPENDENT ACCOUNTANTS' REPORT)

ASSETS

2013 (Reviewed) 2012 (Audited) Current assets:

Cash and cash equivalents Receivables Gift shop inventory Other assets

Total current assets

Non-current assets: Investments Restricted investments Longue Vue House and Gardens Property and equipment, net

Total non-current assets

Total assets

LIABILITIES AND NET ASSETS

Current liabilities: Accounts payable - operations Current portion of note payable

Total current liabilities

Total liabilities

Net assets: Unrestricted Temporarily restricted

Total net assets

Total liabilities and net assets

$ 296,798 : ̂ 805,863 22,487 10,260 47,732 43,600 36,976 18,933

403,993 878,656

11,104,532 9,803,270 264,772 277,560

11,371,925 11,371,925 57,449 107,147

22,798,678 21,559,902

$ 23,202,671 : $ 22,438,558

ASSETS

$ 36,630 $ 54,658 - 3,333

36,630 57,991

36,630 57,991

22,901,269 22,103,007 264,772 277,560

23,166,041 22,380,567

$ 23,202,671 $ 22,438,558

The accompanying notes are an integral part of these financial statements.

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LONGTJE VIJE HOUSE AND GARDENS CORPORATION

STATEMENTS OF ACTrvmES

YEARS ENDED DECEMBER 31. 2013 AND 2012

rSEE INDEPENDENT ACCOUNTANTS' REPORT)

2013 2012

(Reviewed) (Audited)

Temporarily Temporarily

Unrestricted restricted Total Unrestricted restricted Total

Support and revenue:

Admissions and ground fees $ 154,353 $ $ 154,353 $ 138,541 $ $ 138,541

Gift shop and nursery sales, net of discounts of $3,460 and $8,914, respectively 44,164 - 44,164 44,805 - 44,805

Fundraising:

Sentimental Jorrmeys auction 282,341 - 282,341 - - -Long Viewers and membership 57,865 - 57,865 77,938 - 77,938

Symposium 27,804 - 27,804 27,910 - 27,910

Other child and adult programs 192,534 - 192,534 137,645 - 137,645

Contributions 50,626 75,436 126,062 89,254 75,642 164,896

Interest income 134 - 134 144 - 144 Investment gain, net 1,792,949 - 1,792,949 1,758,448 - 1,758,448

Net assets released from restrictions 88,224 (88,224) - 100,193 (100,193) -

Total support and revenue 2,690,994 (12,788) 2,678,206 2,374,878 (24,551) 2,350,327

Expenses:

Program services:

Gift shop 43,932 - 43,932 48,641 - 48,641

Other programs 333,843 - 333,843 252,287 - 252,287

Horticultural 223,205 - 223,205 218,273 - 218,273

Curatorial 382,093 - 382,093 373,183 - 373,183

Strategic 16,787 - 16,787 59,623 - 59,623

Fundraising expenses:

Sentimental Journeys auction 175,747 - 175,747 - - -Long Viewers and membership 209,535 - 209,535 249,359 - 249,359

Symposium 12,733 - 12,733 37,304 - 37,304

Management and general 505,886 - 505,886 595,796 - 595,796

Total expenses 1,903,761 _ 1,903,761 1,834,466 _ 1,834,466

Operating change in net assets 787,233 (12,788) 774,445 540,412 (24,551) 515,861

(continued)

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Non-operating revenues (expenses):

FEMA grant income

Insurance income

Total non-operating revenues

Change in net assets

Net assets at beginning of year

Net assets at end of year

LONGTJE VUE HOUSE AND GARDENS CORPORATION

STATEMENTS OF ACHVITIES

YEARS ENDED DECEMBER 31, 2013 AND 2012

fSEE INPEPENDENT ACCOUNTANTS' REPORT)

2013

Unrestricted

Temporarily

restricted Total

11,029 - 11,029

11,029 _ 11,029

798,262 (12,788) 785,474

22,103,007 277,560 22,380,567

$ 22,901,269 $ 264,772 $ 23,166,041

2012

(Audited)

Unrestricted

Temporarily

restricted Total

9,909 -

9,909

9,909 _ 9,909

550,321 (24,551) 525,770

21,552,686 302,111 21,854,797

$ 22,103,007 $ 277,560 $ 22,380,567

The accompanying notes are an integral part of these financial statements. (concluded)

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LONGUE VUE HOUSE AND GARDENS CORPORATION

STATEMENT OF FUNCTIONAE EXPENSES

YEAR ENDED DECEMBER 31. 2013 rSEE INDEPENDENT ACCOUNTANTS' REPORT)

Fundraising expenses:

Sentimental Long Viewers

Other Journeys and Management

Gift shop programs Horticultural Curatorial Strategic auction membership Symposium and general Total

Advertising $ $ 100 $ - $ $ $ $ 11,000 $ $ 175 $ 11,275

Benefits 1,243 26,763 21,140 12,724 - - 11,128 - 12,599 85,597

Collection conservation - - - 6,766 - - - - - 6,766

Conunittee expenses - 499 213 - 21 72 141 - 3,132 4,078

Computer expenses 863 - - - - - 11,007 - 12,351 24,221

Contract services 8,400 44,195 150 15,642 10,100 36,545 6,951 - 31,563 153,546

Contributions - - - - - - - - - -Cost of sales 12,527 - - - - - - - - 12,527

Cultivation Directors Ftmd - - - - - - - - 12,310 12,310

Depreciation - - - - - - - - 49,698 49,698

Donation - 1,300 - - - - 50 - - 1,350

Event expenses - 752 449 29,071 1,818 98,223 2,529 2,860 1,070 136,772

Facility food and beverage - 27,568 - - - - 9,868 - - 37,436

Fees 3,124 1,294 9 - 12 9,298 1,709 1,957 4,830 22,233

Freight 465 - - - - - - - - 465

Friends of Longue Vue - - - - - - 2,008 - - 2,008

Fundraising - - - - - 36 - - - 36

Grant expenses - - - - - - - - - -Honorarium/lecture - - - - 870 - - - - 870

Insurance - - - - - - - - 145,363 145,363

Maintenance - 747 50,077 56,738 331 150 - - - 108,043

Marketing - - - - - - - - - -Memberships - - 200 1,780 - - 1,730 - 269 3,979

Miscellaneous 5,110 50 13 - 27 1,636 160 130 1,197 8,323

OfBce 50 2,339 296 10,644 38 113 556 - 6,847 20,883

Postage and printing - 34 66 31 972 6,284 15,771 7,786 3,211 34,155

Programs - - - - - - - - - -Publications and subscriptions - - - 29 18 - 332 - - 379

Rental expenses - - - 42 - 23,095 2,623 - 41 25,801

Salaries and wages 11,739 226,839 145,830 109,888 - - 131,085 - 205,139 830,520

Signage Staff conferences . _ . 97 1,529 - 415 - 725 2,766

Supplies 411 1,181 4,077 682 - - 174 - 186 6,711

Transportation expense - 182 102 1,514 400 295 298 - 7,000 9,791

Uniform expense - - 117 - - - - - - 117

Utilities - - 298 136,445 651 - - - 8,180 145,574

Voltmteer - - 168 - - - - - - 168

Total expenses $ 43,932 $ 333,843 $ 223,205 $ 382,093 $ 16,787 $ 175,747 $ 209,535 $ 12,733 $ 505,886 $ 1,903,761


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STATEMENT OF FUNCTIONAL EXPENSES

YEAR ENDED DECEMBER 31. 2012 rSEE INDEPENDENT ACCOUNTANTS' REPORT1

Program services; Fundraising expenses:

Gift shop

Other

programs Horticultural Curatorial Strategic

Sentimental

Journeys auction

Long Viewers

and membership Symposium

Management and

general Total

Advertising $ $ $ $ $ $ $ 13,040 $ 543 $ $ 13,583 Benefits 1,356 19,830 18,564 9,677 6,566 - 1,535 - 16,959 74,487 Collection Conservation - - - 4,723 - - - - 131 4,854 Committee Expenses - - - 189 32 - 535 - 2,898 3,654 Computer Expenses 380 9 - - - - 53,092 - 9,751 63,232 Contract Services 1,640 17,136 516 37,392 5,764 - 3,075 - 23,983 89,506 Cost of Sales 19,866 - - - - - - - - 19,866

Cultivation Directors Fund - - - - - - - - 4,814 4,814 Depreciation - - - - - - - - 83,618 83,618 Donation - - - - - - - - 64 64

Event Expenses - - 1,399 27,148 3,674 - 1,721 20,764 6,764 61,470 Facility Food & Beverage - 698 - - - - 20,837 - - 21,535 Fees 3,284 330 10 66 4 - 2,748 2,841 2,056 11,339 Freight 973 - - - - - - - - 973

Friends of LV - - - - - - - 100 - 100

Fundraising - - - - - - 3,150 - - 3,150 Insurance - - - - - - - - 145,530 145,530 Maintenance - 1,361 44,513 53,258 51 - 70 - 13,045 112,298

Marketing - 30 - - - - 122 - - 152 Memberships - - 216 2,372 - - 820 - 378 3,786 Miscellaneous 9,407 - - - 30 - 35 388 2,374 12,234 Office 60 205 362 100 • 97 - 473 600 6,857 8,754 Postage and printing - 81 9 234 829 - 16,113 11,604 4,070 32.940 Publications & Subscriptions - - - - - - 140 - 153 293 Rental Expenses - 508 315 - - - 579 464 - 1,866

Salaries and Wages 11,441 209,246 147,126 95,398 41,538 - 129,416 - 257,919 892,084 Signage - - - 109 - - - - - 109 Staff Conferences - - - 238 59 - - - 1,000 1,297

Supplies 234 1,622 3,748 3,384 - - 209 - 162 9,359

Transportation Expense - 1,231 212 1,313 590 - 1,649 - 194 5,189

Uniform Expense - - 180 25 - - - - - 205 Utilities - - 1,043 137,557 526 - - - 13,076 152,202 Volunteer - - 60 - (137) - - - - (77)

Total expenses $ 48,641 $ 252,287 $ 218,273 $ 373,183 $ 59,623 $ $ 249,359 $ 37,304 $ 595,796 $ 1,834,466


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STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31,2013 AND 2012 (SEE INDEPENDENT ACCOUNTANTS' REPORT)

Cash flows from operating activities: Reconciliation of changes in net assets to net cash used in operating activities:

Change in net assets Adjustments to reconcile changes in net assets to net cash used in

operating activities; Depreciation expense Net unrealized and realized gains on investments Change in receivables Change in other assets Change in gift shop inventory Change in accounts payable - operations

Net cash used in operating activities

Cash flows from investing activities: Proceeds from maturities/sales of investments Purchases of investments

Net cash provided by investing activities

Cash flows from financing activities: Principal payments on capital lease

Net cash used in financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2013

(Reviewed)

49,698 (1,637,034)

(12,227) (18,043)

(4,132) (18,028)

2012

(Audited)

$ 785,474 $ 525,770

83,618 (1,554,943)

30,359 (8,131) 21,594 39,052

(854,292) (862,681)

3,183,860 3,177,770 (2,835,300) (1,740,435)

348,560 1,437,335

(3,333) (1,361)

(3,333) (1,361)

(509,065) 573,293

805,863 232,570

$ 296,798 $ 805,863


LONGUE VUE HOUSE AND GARDENS CORPORATION NOTES TO FINANCIAL STATEMENTS


1. Summary of Significant Accounting Policies

Nature of Business Longue Vue House and Gardens Corporation (the Corporation) was formed in 1986 to manage the operations of the Longue Vue estate, referred to as Longue Vue House and Gardens. The operations of Longue Vue House and Gardens include management of grounds maintenance, admissions and ground fees, gift shop, as well as ftindraising events. On January 1, 2004, the Longue Vue Foundation (the Foundation), which owned the Longue Vue estate, contributed its assets and liabilities to the Corporation. The assets and liabilities were recorded at the Foundation's book basis, which approximated fair value, and net assets were restated at the beginning of the year. As a result of the transaction, the Foundation's existence ceased and the Corporation was the sole surviving entity.

Basis of Accounting The accounts of the Corporation are maintained, and the financial statements are prepared, on the accrual basis of accounting. Accordingly, revenues are recognized when earned, and expenses are recognized when incurred.

Basis of Presentation The financial statement presentation follows the authoritative guidance for not-for-profit organizations. Under this guidance, the Corporation is required to report information regarding its financial position and activities according to three classes of net assets:

• Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. • Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that may or

will be met either by actions of the Corporation and/or the passage of time. • Permanently restricted net assets - Net assets subject to donor-imposed stipulations that neither

expire by the passage of time nor can be fulfilled and removed by actions of the Corporation pursuant to those stipulations. The Corporation had no permanently restricted net assets as of December 31, 2013 or 2012.

Dues and other fees collected, expenses paid, and cash balances held by the Friends of Longue Vue for the benefit of the Corporation are included in the accompanying financial statements as part of the Corporation's operations.

Use of Estimates Management of the Corporation has made estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these fmancial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, and the valuation of fixed assets and investments. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions.

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LONGUIE VUE HOUSE AND GARDENS CORPORATION NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2013 AND 2012

1, Summary of Significant Accounting Policies (continued)

Cash and Cash Equivalents For the purpose of the Statements of Cash Flows, the Corporation considers cash on hand, cash on deposit in financial institutions, and highly liquid investments with original maturities of three months or less to be cash and cash equivalents.

Investments Investments are stated at fair value (see Note 2). Unrealized gains and losses on investments in equity securities with readily determinable fair values and all investments in debt securities are recorded in the Statements of Activities as increases or decreases in unrestricted net assets unless their use is temporarily or permanently restricted by explicit donor stipulations or law. Dividend, interest, and other investment income are recorded as increases in unrestricted net assets unless the use is restricted by the donor. Donated investments are recorded at fair market value at the date of receipt. All gains and investment income are unrestricted.

Realized gains and losses, and declines in value judged to be other than temporary, are included in investment gain (loss) on the Statements of Activities. Realized gains and losses on the sales of securities are determined using the specific-identification method. A decline in the fair value of investments below cost that is deemed to be other than temporary results in a charge to change in net assets and the establishment of a new cost basis for the investment.

Gift Shop Inventorv Inventory is stated at the lower of cost or market determined by the average cost method.

Longue Vue House and Gardens The Longue Vue House, surrounding gardens, and other structures, including art objects and furnishings, are carried in the accompanying financial statements at the estimated fair market value at the date of transfer to the Corporation. These items are deemed to be collection items for accounting purposes. Items accessioned into the collection are capitalized at cost, if purchased, and at appraised or fair value if donated. Gains or losses on the deaccession of collection items are classified in the Statements of Activities as unrestricted or restricted support depending on donor restrictions, if any, placed on the item at the time of accession.

Depreciation is not recognized on historical treasures or on individual works of art whose economic benefit or service potential is used up so slowly that their estimated useful lives are extraordinarily long. Accordingly, the Corporation does not record depreciation on the Longue Vue House, other structures associated with the estate, furnishings displayed within the Longue Vue House, and works of art held for exhibition.

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DECEMBER 31,2Q13 AND 2012

1. Summary of Significant Accounting Policies (continued)

Longue Vue House and Gardens Ccontmued') Since 1998, the Corporation has incurred costs pertaining to the repair and renovation of the gardens and structures at Longue Vue House and Gardens. These costs have not been capitalized since the repairs and renovations did not increase the capacity or operating efficiency of the property, but rather brought the property back to its original condition. The book value of the Longue Vue House and surrounding gardens is $11,371,925 at December 31, 2013 and December 31, 2012.

Propertv and Equipment Property and equipment are recorded at cost or, in the case of donated assets, at their fair value at date of receipt. Depreciation of equipment, improvements, and furnishings is provided over the estimated useful lives of the respective assets using the straight-line method. Maintenance and repairs are expensed as incurred and major improvements are capitalized. When items of equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the Statements of Activities. Although the chiller and the HVAC system are physically located within the Longue Vue House, these replacements were deemed to have determinable useful lives, estimated to be fifteen years, and are, therefore, being depreciated.

Acquisitions of property and equipment in excess of $1,000 with an estimated usefiil life of three years or greater are capitalized. Computer software with an acquisition cost in excess of $1,000 is capitalized.

Impairment Impairment of long-lived assets is tested whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using appraisals. Losses on long-lived assets to be disposed of are determined in a similar marmer, except that fair market values are reduced for the cost to dispose. There were no impairments of long-lived assets recorded by management during the years ended December 31, 2013 and 2012.

Restricted Net Assets The Corporation reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the Statements of Activities as net assets released from restrictions.

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LONGUE VXJE HOUSE AND GARDENS CORPORATION NOTES TO FINANCIAL STATEMENTS



Restricted Net Assets (continued') Gifts of long-lived operating assets such as land, buildings or equipment are reported as unrestricted support, unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long these long-lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long-lived assets are placed in service.

Contributions The Corporation accounts for contributions received and contributions made in accordance with authoritative standards. Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or nature of any donor restrictions.

All donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statements of Activities as Net Assets Released from Restrictions.

Unconditional Promises to Give and Pledges The fair value of contributions is equal to the carrying value for contributions expected to be collected within one year. Contributions expected to be collected in future periods are discounted to present value based on management's assumptions as applicable.

Contributed Services No amoimts have been reflected in the financial statements for donated services since the recognition criteria under U.S. generally accepted accounting principles have not been met.

Membership Revenue Recognition Membership dues are recognized in the Statements of Activities under Fundraising revenue in the period that fiinds are received.

Advertising Costs Advertising costs that are included in the Statements of Activities are expensed in the period incurred. No costs are capitalized. Advertising expense totaled $11,275 and $13,583 for the years ended December 31, 2013 and 2012, respectively.

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LONGUE VUE HOUSE AND GAia)ENS CORPORATION NOTES TO FINANCIAL STATEMENTS



Income Taxes The Corporation qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code and, accordingly, is not subject to Federal income tax.

The Corporation applies a "more-likely-than-not" recognition threshold for all tax uncertainties. This approach only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. As a result of implementing this approach, the Corporation has reviewed its tax positions and determined there were no outstanding or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities. Therefore, the implementation of this standard has not had a material effect on the Corporation. The Corporation's tax returns for the years ended December 31, 2012, 2011, and 2010 remain open and subject to examination by taxing authorities. The Corporation's tax return for the year ended December 31, 2013 has not been filed yet and is on valid extension.

2. Investments

Investments are recorded at fair value and consist of the following as of December 31:

2013 2012 Corporate stocks $ 10,831,959 $ 9,230,288 U.S. government securities 531,826 845,591 Corporate bonds 5,519 4,951

Total $ 11,369,304 $ 10,080,830

Investment gain for the years ended December 31, is comprised of the following:

2013 2012 Dividends $ 217,946 $ 258,530 Interest 11,509 16,304 Unrealized and realized gains 1,637,034 1,554,943 Investment expenses (73,540) (71,329)

Total $ 1,792,949 $ 1,758,448

In determining realized gains and losses, the cost of the securities sold is based on the first-in, first-out (FIFO) method.

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3. Property and Equipment

The operations of the Corporation are conducted on the grounds of Longue Vue House and Gardens, which includes the Longue Vue House, surrounding gardens, and other structures. The following is a summary of property and equipment, less accumulated depreciation at December 31:

Estimated Useful

2013 2012 Lives Property and equipment $ 871,389 $ 871,389 3-20 years Accumulated depreciation (813,940) (764,242)

Property and Equ^ment, net $ 57,449 $ 107,147

Depreciation expense was $49,698 and $83,618 for the years ended December 31, 2013 and 2012, respectively. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets.

4. Retirement Plan

The Corporation has a defined contribution retirement plan which covers all employees age 21 and over with 1,000 or more hours of service per year and who have completed at least two years of service. Benefits are provided through tax-deferred annuities. Employees are immediately vested in their accounts. Benefits at retirement are based on the value of an employee's account with the insurance company. Retirement benefit expense incurred by the Corporation totaled $29,477 and $29,720 during the years ended December 31, 2013 and 2012, respectively, and is included within the Statements of Activities.

5. Concentrations of Credit Risks

The Corporation maintains cash in bank accounts in excess of insured limits periodically. The Corporation has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.

Investments represent a significant portion of the assets of the Corporation. Such assets are subject to interest rate fluctuations and other risks. Future changes in financial markets could affect the value of the assets and future earnings of the Corporation. In the event of non-performance, the Corporation's loss is equal to the contractual amount of the investment.

Included in cash and cash equivalents at December 31, 2013 and 2012, is a money-market fund that totaled $14,721, and is insured by the Securities Investor Protection Corporation and by insurance provided by the investment brokers.

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6. Fair Value Measurements

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fan-value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

The three levels of the fair value hierarchy under the framework are described as follows:

• Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

• Level 2 - Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The following is a description of the valuation methodologies used for assets measured at fair value:

Corporate stocks: Valued at fair value by using quoted prices for identical securities.

Corporate bonds and U.S. government securities: Valued at the closing price reported on the active market on which the individual securities are traded.

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LQNGUE VUE HOUSE AND GARDENS CORPORATION NOTES TO FINANCIAL STATEMENTS


6. Fair Value Measurements (continued)

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Corporation's assets at fan-value as of December 31, 2013:

Level 1 Level 2 Level 3 Total Corporate stocks

Energy $ 683,452 $ - $ $ 683,452 Materials 389,955 - 389,955 Industrials 1,352,571 - 1,352,571 Consumer discretionary 1,849,250 - 1,849,250 Consumer staples 1,290,170 - 1,290,170 Health care 1,202,694 - 1,202,694 Financials 1,113,248 - 1,113,248 Information technology 2,346,462 - 2,346,462 Telecommunication services ' 512,302 - 512,302 International equity 91,854 - 91,854

U.S. government securities Government notes - 531,826 531,826

Corporate bonds - 5,520 5,520

Total $ 10,831,958 $ 537,346 $ $ 11,369,304

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6. Fair Value Measurements (continued)

The following table sets forth by level, within the fair value hierarchy, the Corporation's assets at fair value as of December 31, 2012:

Level 1 Level 2 Level 3 Total Corporate stocks

Energy $ 651,975 $ $ $ 651,975 Materials 375,987 - - 375,987 hidustrials 631,597 - - 631,597 Consumer discretionary 1,531,930 - - 1,531,930 Consumer staples 1,600,695 - - 1,600,695 Health care 600,239 - - 600,239 Financials 1,028,120 - - 1,028,120 Information technology 2,342,308 - - 2,342,308 Telecommunication services 467,438 - - 467,438

U.S. government securities Government notes - 544,088 - 544,088 Agency notes - 301,503 - 301,503

Corporate bonds - 4,950 - 4,950

Total $ 9,230,289 $ 850,541 $ $ 10,080,830

7. Contingencies

In 1998, the Foundation purchased the land and building located at 14 Garden Lane, New Orleans, Louisiana (the Garden Lane Property). This purchase gave the Foundation a majority vote by area with respect to certain building restrictions for the Garden Lane neighborhood. After having obtained a conditional use permit for the City of New Orleans for museum and related uses, the Foundation terminated the building restrictions and began its plan to convert the Garden Lane Property into support facilities for Longue Vue House and Gardens.

Termination of the building restrictions would also free up the potential uses of the entire Longue Vue site, consistent with that conditional use permit, fri response to the termination, certain residents on Garden Lane filed suit in state court against the Foundation and Corporation, seeking a declaration that the termination of the building restrictions was invalid and that the building restriction remain in effect.

In 2004, the State Supreme Court ruled that, although the Foundation's majority ownership in Garden Lane gave them the legal rights to terminate the restrictions, a building restriction agreement, which was renewed in 1977 for 50 years was valid.

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LQNGUE VXJE HOUSE AND GARDENS CORPORATION NOTES TO FINANCIAL STATEMENTS


7. Contingencies (continued)

As a result, Longue Vue is not able to utilize the Garden Lane Property until 2027. In addition, the Court decision also limits the timing and nature of events on Garden property.

The Corporation participated in a federally-assisted grant program in fiscal years 2013 and 2012. The program is subject to compliance audits. Such audits could lead to requests for reimbursement by the grantor agency for expenditures disallowed under terms of the grants. The Corporation believes that the amount of disallowances, if any, which may arise from future audits, will not be material to the financial statements.

The Corporation has also entered into an employment agreement with a member of executive management. Per the terms of said employment agreement, the Corporation may incur compensation liabilities if the employee is terminated without cause during the term of the agreement.

8. Temporarily Restricted Net Assets

9.

Temporarily restricted net assets held at December 31 are as follows:

2013 2012 Discovery Gardens $ 77,441 $ 92,093 Grants 40,607 30,937 Renovation of Longue Vue Estate 109,047 109,047 Strategic Plan 25,334 31,438 Opera Project 12,343 14,045

Total $ 264,772 $ 277,560

Fnnctional Allocation of Expenses

The costs of providing the various programs and other activities have been summarized on a functional basis in the Statements of Activities. Accordingly, certain costs have been allocated among the programs and supportmg services benefited.

10. Subsequent Events

Management has evaluated subsequent events through the date that the financial statements were available to be issued, June 30, 2014, and determined that there were no subsequent events requiring disclosure.

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LQNGUE VUE HOUSE AND GARDENS CORPORATION NEW ORLEANS, LOUISIANA

SUPPLEMENTAL SCHEDULES


LQNGUE VXJE HOUSE AND GARDENS CORPORATION NEW ORLEANS, LOUISIANA

SUPPLEMENTARY INFORMATION

Schedule I

Admissions and ground fees for the years ended December 31, 2013 and 2012

Food revenue Admissions Ground fees

Total

2013 (Reviewed)

2012

Sentimental Journeys auction revenue for the years ended December 31,2013 and 2012

Trips Underwriters and contributions Diimer Raffle Other

Total

$ 43,852 $ 40,938 49,575 55,146 60,926 42,457

$ 154,353 $ 138,541

Schedule 11

2013 2012 (Reviewed) (Audited)

$ 196,171 $ 70,100 -12,850 -3,220 -

$ 282,341 $

See Independent Accountants' Report.

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LONGUE VUE HOUSE AND GARDENS CORPORATION New Orleans., Louisiana

Summary Schedule of Findings and Questioned Costs

Year ended December 3 L 2013

(1) Summary of Results

(a) The type of report issued on the financial statements; Independent Accountants' Report

(b) Significant deficiencies in internal control were disclosed by the audit of the financial statements: n/a Material weaknesses: n/a

(c) Noncompliance which is material to the financial statements: n/a

(d) Management letter comments issued: n/a

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LONGUE VUE HOUSE AND GARDENS CORPORATION New Orleans., Louisiana

Summary Schedule of Prior Year Findings and Questioned Costs

Year ended December 3 L 2013

(1) Prior Year Findings

Finding 2012-01: Intemal Controls over Financial Reporting

Criteria:

Condition:

Cause:

Effect:

Under Louisiana statute, the Corporation is required to have financial statements prepared in accordance with U.S. generally accepted accounting principles.

The Corporation did not perform account reconciliations over investments, receivables, and payables to ensure statements were prepared in accordance with U.S. generally accepted accounting principles.

The Corporation has limited staffing to assist with account reconciliations over investments, receivables, and payables.

As the Corporation was limited staffing, they did not prepare account reconciliations over investments, receivables, and payables.

Recommendation: Management personnel should perform account reconciliations over investments, receivables, and payables to ensure statements were prepared in accordance with U.S. generally accepted accounting principles.

Management's Response and corrective actions: Management personnel will perform account reconciliations over investments,

receivables, and payables to ensure statements were prepared in accordance with U.S. generally accepted accounting principles.

Current Status: Not resolved during the year ended December 31,2013.

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