Ben, 

Thank you for your response, I hope you are feeling better and I hope all went well with your mother’s 
surgery.  I have reviewed your response and have a few more questions: 
1) Could you kindly back out any permanently restricted funds included as cash inflow in the cash 
flow and resubmit. 
2) I am not clear on your explanation to my DOE funding question.   Let me re‐phrase my question; 
Footnote #2 in the 12/31/09 audit  indicates $400k is to be received from the DOE between the 
period 10/1/09‐9/30/11 however, your cash flow indicates $760K of cash coming in from the 
DOE between 10/1/10‐ 9/30/11.  You mention accruals however, since it is a cash flow the only 
aspect we are concerned with is how much cash in coming in.  Please confirm to me the 
expected cash coming in from the DOE between now and 9/30/11 and adjust the cash flow if 
need be. 
3) You indicate operating expenses have been significantly reduced in the area of professional 
lobbyist, fundraising and traveling exhibits.   
However, I suspect the professional lobbyist was used to assist in the obtaining of the federal 
legislation and the fundraising obviously to be used in helping to attain your fundraising cash 
inflow projection.    I note your fundraising cash inflow projection is in keeping with the actual 
fundraising revenues recorded in your YTD 9/30/10 financials (which is significantly higher than 
actual previous years) however, if you reduce fundraising costs will you be able to maintain the 
fundraising inflow levels indicated in the cash flow? Also, how will cutting lobbyist affect the 
outcome of the federal legislation? 
 
In formulating my recommendation to the Commission to approve the OCFC funding and in 
addition to Mr. Pepper’s guarantee I will be looking at the probability of the Freedom Centers 
ability  to remain viable until Federalization occurs, assuming OCFC funding in February 2011.  I 
know it is “your understanding” the full $3M of Federal dollars will be received in October 2011, 
 fundraising will continue at those levels recently obtained in your YTD 2010 numbers,  and 
reduced operating cost will be realized as is indicated by your cash projection however, in the 
event those expectations are not fully realized  does the board have a back‐up plan?   Kindly 
share with me your sentiments so I may prepare for the possibility of those reservations. 
 
Thanks, 
Tony 
 
From: BReece@nurfc.org [mailto:BReece@nurfc.org]
Sent: Monday, December 06, 2010 10:46 AM
To: Tony Capaci
Subject: RE: questions on cash flow

Tony,

I was out sick for much of last week. Attached is my response to your questions below, please let me
know if you have any other questions.

Thank you,
From: "Tony Capaci" <tcapaci@culture.ohio.gov>
To: <BReece@nurfc.org>
Cc: "Kathy Fox" <KFox@culture.ohio.gov>, "Chris Bruner" <cbruner@culture.ohio.gov>, <594@ocfcsp.oasfc.local>
Date: 11/30/2010 12:34 PM
Subject: RE: questions on cash flow

Ben,
I have reviewed the 15 month cash flow and have a few questions:
1)      When I compare the private support in the cash flow to the total support in the financial statement at 
9/30/10 (annualized) the cash flow projections appear to line up.  However, when I back the permanently 
restricted and temporarily restricted cash from the 9/31/10 financial the unrestricted support (on an annualized 
basis) appears to be quite a bit lower than the 2011 projection.  I suspect the permanently restricted fundraising 
on the 9/ 30/10 financial is for the operating endowment and should not be included in a projected (operating) 
cash flow.  Did you base your projection of the cash flow on the actual fundraising achieved as shown in the 
9/30/10 financials including temporarily restricted support.  What are the restrictions on temporarily restricted 
that you anticipate will allow it to be included for general operating purposes?
2)      I see $485K in 12/10 for DOE and $275K through 9/ 2011 also for DOE for a total of $760K ( I assume no DOE 
funds have been collected at YTD 9/30/10) However, footnote #2 in the 9/30/09 audit states the two year DOE 
grant for the two year period 10/1/09‐9/30/11 is $400K? why the difference?  Are state DOE funds included with 
the Federal in the cash flow?
3)      The operating expenses on the accrual basis as indicated in the 9/30/09 audit (net of 
depreciation) are approximately $8.2M; the operating expenses for 2010 as indicated on the 
proforma are $6.2M (also on the accrual basis); YTD expenses net of depreciation on the 
9/30/10 statement of activity are $5.6M for 9 months or $7.6M (annualized); proforma 2011 
are $5.6M;  the cash outflows on the cash flow total $5.6M for 2011. 2011 proforma and  cash 
flow is quite a decrease from  FYE 09, proforma 2010 and annualized 2010.  What are the cuts 
in costs from the 9/30/09 audit that will account for $1.6M? 
                
I am meeting with Kathy this afternoon to discuss the cash flow and if at all possible I would like to include your 
responses.  If not possible I will update Kathy on your response once I receive it.
 
Thanks,
 
 
 
From: BReece@nurfc.org [mailto:BReece@nurfc.org]
Sent: Monday, November 29, 2010 3:01 PM
To: Tony Capaci
Subject: Re: estimated security cost for six months ( mothballed)

Attached are the cash flow statements requested, both are in one file.

As for estimating security cost, I would offer up that the systems be setup to
automatically contact either the local police or fire station or simply keep
Guardsmark on call for an automatic notification from the system, which would
limit the cost to actual time needed, Currently we pay an average of $18 per hour
for Guardsmark Security Services. If deemed necessary a guard could be kept at
the console 24/7, we currently only have 24 hour coverage six days a week.. I
would estimate 24/7 service at a cost of $79,000 (365 days X 24 Hours x .5 X $18
per hour). Please let me know if you have any other questions.

From: "Tony Capaci" <tcapaci@culture.ohio.gov>

To: <BReece@nurfc.org>
Cc: "Chris Bruner" <cbruner@culture.ohio.gov>, <594@ocfcsp.oasfc.local>
Date: 11/23/2010 04:26 PM
Subject: estimated security cost for six months ( mothballed)

 
 
Ben,  
Could you kindly give us an estimated security cost for six months if the building were to be mothballed.  
Thanks,  
 
 
 
Holiday Office Closure:  The Ohio Cultural Facilities office will be closed on Thursday, November 25 and Friday, 
November 26 for Thanksgiving Weekend.  The office will re‐open on Monday, November 29 at 8 a.m.  
Tony Capaci 
Chief Financial Analyst 
Ohio Cultural Facilities Commission 
100 E. Broad Street, Suite 300 
Columbus, OH  43215‐3416  
Telephone: 614‐728‐6924 
Fax: 614‐752‐2775 
e‐mail:  tcapaci@culture.ohio.gov 
website: www.culture.ohio.gov  
The Ohio Cultural Facilities Commission, formerly the Ohio Arts & Sports Facilities Commission, oversees capital improvement funds appropriated by 
the Ohio General Assembly and Governor for community cultural facility projects including non‐profit  theaters, museums, historical sites and publicly 
owned professional sports venues. You are invited to visit www.culture.ohio.gov or call (614) 752‐2770 for more information on the Commission or 
to learn how we can assist your cultural facility project.