ROBINSON, FARMER, COX ASSOCIATES

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1 ROBINSON, FARMER, COX ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL LIMITED LIABILITY COMPANY Communication with Those Charged with Governance To The Board of Directors of Building Goodness Foundation We have audited the financial statements of Building Goodness Foundation for the year ended December 31, 2011, and have issued our report thereon dated June 8, Professional standards require that we provide you with the following information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 6, Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Building Goodness Foundation are described in Note 2 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during We noted no transactions entered into by Building Goodness Foundation during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were Management s estimate of the useful lives of fixed assets and the functional allocation of expenses. We evaluated the key factors and assumptions used to develop the useful life of fixed assets and the functional allocation of expenses in determining that the criteria used for those items are reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

2 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 8, Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a second opinion on certain situations. If a consultation involves application of an accounting principle to the Organization s financial statements or a determination of the type of auditor s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Organization s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of the board of directors and management of Building Goodness Foundation and is not intended to be and should not be used by anyone other than these specified parties. Charlottesville, Virginia June 8, Communication with Those Charged with Governance -

3 CHARLOTTESVILLE, VIRGINIA FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2011 ROBINSON, FARMER, COX ASSOCIATES A PROFESSIONAL LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTS CHARLOTTESVILLE RICHMOND FREDERICKSBURG STAUNTON BLACKSBURG

4 CHARLOTTESVILLE, VIRGINIA FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2011 Table of Contents Page Independent Auditors Report... 1 Financial Statements: Statement of Financial Position... 2 Statement of Activities... 3 Statement of Cash Flows... 4 Statement of Functional Expenses... 5 Notes to Financial Statements Supplemental Information: Combining Schedule of Financial Position Combining Statement of Activities... 13

5 ROBINSON, FARMER, COX ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL LIMITED LIABILITY COMPANY INDEPENDENT AUDITORS REPORT BOARD OF DIRECTORS BUILDING GOODNESS FOUNDATION CHARLOTTESVILLE, VIRGINIA We have audited the accompanying statement of financial position of Building Goodness Foundation (a nonprofit organization), as of December 31, 2011, and the related statements of activities, cash flows, and functional expenses for the year then ended. These financial statements are the responsibility of the Organization s management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Organization s 2010 financial statements and, in our report dated June 24, 2011, we expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable 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 in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides 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 Building Goodness Foundation as of December 31, 2011, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental information on pages is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling 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. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Charlottesville, Virginia June 8,

6 - Financial Statements -

7 Statement of Financial Position At December 31, 2011 (With Comparative Totals for 2010) Assets Current assets: Cash and cash equivalents $ 1,047,210 $ 676,849 Accounts receivable 265 1,221 Unconditional promises to give - 1,000,000 Prepaid expenses 4,018 1,000 Total current assets $ 1,051,493 $ 1,679,070 Equipment: Office equipment $ 8,356 $ 8,356 Less: accumulated depreciation (8,356) (8,356) Net equipment $ - $ - Other assets: Beneficial interest in agency fund held by third party $ 24,928 $ - Total assets $ 1,076,421 $ 1,679,070 Liabilities and Net Assets Current liabilities: Accounts payable $ 9,163 $ 20,600 Payroll liabilities 7,973 10,153 Total liabilities $ 17,136 $ 30,753 Net assets: Unrestricted $ 163,573 $ 246,272 Temporarily restricted 875,629 1,381,962 Permanently restricted 20,083 20,083 Total net assets $ 1,059,285 $ 1,648,317 Total liabilities and net assets $ 1,076,421 $ 1,679,070 The accompanying notes to the financial statements are an integral part of this statement. 2

8 Statement of Activities For the Year Ended December 31, 2011 (With Comparative Totals for 2010) Temporarily Permanently Total Unrestricted Restricted Restricted Revenues, gains and other support: Individual contributions $ 150,921 $ 263,816 $ - $ 414,737 $ 1,265,535 Trip participation donations - 173, ,472 36,627 Foundation grants 111, , , ,470 Governmental grants - 19,639-19,639 12,261 Corporate/Business contributions 38,486 15,902-54,388 88,610 Religious and community contributions 7,550 10,505-18,055 60,487 Gifts in kind 111, , ,875 Program service income 5, ,360 2,530 Administrative service fees 2, ,058 11,000 Miscellaneous income , Investment income 2, , Net assets released from restrictions 1,255,857 (1,255,857) Total revenues, gains and other support $ 1,686,115 $ (506,333) $ - $ 1,179,782 $ 2,270,658 Expenses: Program $ 1,601,129 $ - $ - $ 1,601,129 $ 765,787 Management and General 51, , ,354 Fundraising 116, ,212 57,926 Total expenses $ 1,768,814 $ - $ - $ 1,768,814 $ 948,067 Change in net assets $ (82,699) $ (506,333) $ - $ (589,032) $ 1,322,591 Net assets at beginning of year 246,272 1,381,962 20,083 1,648, ,726 Net assets at end of year $ 163,573 $ 875,629 $ 20,083 $ 1,059,285 $ 1,648,317 The accompanying notes to the financial statements are an integral part of this statement. 3

9 Statement of Cash Flows For the Year Ended December 31, 2011 (With Comparative Totals for 2010) Cash flows from operating activities: Change in net assets $ (589,032) $ 1,322,591 Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Change in beneficial interest in agency fund (24,928) - (Increase) decrease in assets: Accounts receivable ,770 Contributions receivable - 3,339 Unconditional promises to give 1,000,000 (1,000,000) Prepaid expenses (3,018) (969) Increase (decrease) in liabilities: Accounts payable (11,437) 11,781 Accrued payroll - (2,851) Payroll liabilities (2,180) 3,948 Net cash provided by (used in) operating activities $ 370,361 $ 354,609 Net increase (decrease) in cash and cash equivalents $ 370,361 $ 354,609 Cash and cash equivalents at beginning of year 676, ,240 Cash and cash equivalents at end of year $ 1,047,210 $ 676,849 The accompanying notes to the financial statements are an integral part of this statement. 4

10 Statement of Functional Expenses For the Year Ended December 31, 2011 (With Comparative Totals for 2010) Management and Total Program General Fundraising Salaries and wages $ 200,749 $ 29,748 $ 67,432 $ 297,929 $ 235,970 Payroll taxes 14,921 2,227 5,122 22,270 18,337 Gifts in kind 111, , ,875 Dues and fees 7,620 1, ,567 3,403 Equipment purchases, maintenance and depreciation 4,346 1,863-6,209 1,386 Business insurance 1,564 1,560-3,124 13,573 Meetings and events 21,192-34,976 56,168 35,172 Miscellaneous expenses Occupancy expenses 7,906 1,658 1,658 11,222 9,127 Office supplies and expenses 3,670 1,232 1,283 6,185 7,819 Postage and shipping 4,993-1,249 6,242 6,148 Printing, copying and reproduction 15,707-3,047 18,754 15,328 Seminars and training 24, ,638 20,558 Professional services 4,030 10, ,734 20,877 Professional development ,707 - Public education 4, ,206 19,507 Advertising 10, ,116 - Telephone/internet 2, ,039 3,112 Travel 295, ,779 17,594 Direct project expenses 865, , ,283 Total $ 1,601,129 $ 51,473 $ 116,212 $ 1,768,814 $ 948,067 The accompanying notes to the financial statements are an integral part of this statement. 5

11 Notes to Financial Statements At December 31, 2011 NOTE 1 - NATURE OF ACTIVITIES: Building Goodness Foundation (BGF, the Organization) is a not-for-profit organization powered by skilled volunteers from the construction trades. BGF builds clinics, schools, shelters, and other structures for communities in need. The Organization builds for the local community of Charlottesville, Virginia, for impoverished and disaster-stricken areas such as the Gulf Coast, and developing countries like Haiti and Guatemala. Programs are supported primarily through contributions received from individuals, foundations, business, and religious organizations. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting: The Organization s books are maintained and the accompanying financial statements are presented on the accrual basis of accounting. Financial Statement Presentation: Revenues, expenses, gains, and losses are classified based on existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Organization and changes therein are classified and reported as follows: Unrestricted net assets - Net assets that are not subject to any donor-imposed stipulations. At December 31, 2011, the Organization had unrestricted net assets of $163,573. Temporarily restricted net assets - Net assets subject to donor-imposed restrictions on their use that may be met either by actions of the Organization or the passage of time. At December 31, 2011, the Organization had temporarily restricted net assets of $875,629. Permanently restricted net assets - Net assets subject to donor-imposed or other legal restrictions requiring that the principal be maintained permanently by the Organization. Generally, the donors permit the Organization to use all or part of the income earned for either general or donor-specific purposes. At December 31, 2011, the Organization had permanently restricted net assets of $20,083. Cash and Cash Equivalents: For the purposes of the statement of cash flows, the Organization considers demand deposits, money market funds held in banks, and all short-term investments purchased with a maturity of three months or less to be cash and cash equivalents. Receivables: Receivables are stated at the amount management expects to collect from outstanding balances. Management uses the direct write-off method for uncollectible accounts. Once management has determined that an account is uncollectible, receivables are charged to expenses. No bad debt expense was recorded for the year ended December 31, At December 31, 2011, there were no receivables greater than ninety days past due. 6

12 Notes to Financial Statements At December 31, 2011 (continued) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Equipment: The Organization follows the practice of capitalizing all expenditures for fixed assets with a cost of more than $2,000. Donated fixed assets are capitalized at their fair market value at the date of donation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally approximates five years for equipment and furniture. There was no depreciation expense for the year. Contributions and Grants: Contributions are recognized as revenues in the period received. Conditional contributions are recorded when the conditions have been met. Contributions are considered to be unrestricted unless specifically restricted by the donor. BGF reports contributions in the temporarily or permanently restricted net asset class if they are received with donor or grant stipulations as to their use. When a restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are released to unrestricted net assets in the statement of activities. Restricted contributions are not reported in the temporarily restricted net asset class if it is anticipated such restrictions will be met in the current reporting period. Income Taxes: Building Goodness Foundation is a not-for-profit organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, and has been classified as an organization that is not a private foundation under Section 509(a)(3) of the Internal Revenue Code. Contributions to Building Goodness Foundation qualify as tax deductible charitable contributions to the extent provided by Section 170 of the Internal Revenue Code. Functional Allocation of Expenses: The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Unconditional Promises to Give: Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. 7

13 Notes to Financial Statements At December 31, 2011 (continued) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) Comparative Totals: Comparative totals are presented for informational purposes only. Certain prior year amounts have been reclassified to the current year presentation. NOTE 3 - FUNDRAISING EXPENSE: Fundraising expense for fiscal year ending December 31, 2011 was $116,212. NOTE 4 - TEMPORARILY RESTRICTED NET ASSETS: Net assets were released from grantor restrictions by incurring expenditures satisfying the following restricted purposes: Pearlington Project Fund $ 1,700 Blue Moon Fund 554 Local projects 1,980 ETI/Trade School 13,991 Oakwood Foundation 970,835 Oakwood Scholarships 77,154 Oakwood Capacity Building 114,954 International - Non-Haiti 2,297 Building Goodness in April 71,329 Other restricted accounts 1,063 Total $ 1,255,857 At December 31, 2011, temporarily restricted net assets are available for the following purposes: Scholarship funds $ 3,730 Wardle Family Foundation for Villa Soleada 2,596 Mattaponi 5,400 Local projects 9,036 ETI/Trade School 477,928 Oakwood Foundation 184,086 Oakwood Scholarships 97,527 Oakwood Capacity Building 22,446 Building Goodness in April 72,880 Total temporarily restricted net assets $ 875,629 8

14 Notes to Financial Statements At December 31, 2011 (continued) NOTE 5 - PERMANENTLY RESTRICTED NET ASSETS: In January 2004, the Building Goodness Foundation received a donation of $20,083 for the purpose of establishing a scholarship fund. The income from this contribution is to be used to provide scholarships to BGF skilled craftspeople and participants who might not otherwise be able to participate in BGF international work trips. If the Board of Directors of the Building Goodness Foundation determines that any portion of the earned income is not spent for scholarships within a reasonable amount of time after a fiscal year, the Board may add the income to the principal of the scholarship fund or continue to hold it for future scholarships. At December 31, 2011, the scholarship fund was $20,083. NOTE 6 - FINANCIAL RISK: All cash in banks are in federally insured accounts. FDIC coverage extends to $250,000 per entity. At December 31, 2011, the Organization had no uninsured bank balances. NOTE 7 INVESTMENT INCOME: Included in investment income for the year ended December 31, 2011 are: Interest and dividends $ (254) Gain (loss) on beneficial interest in agency fund 601 Total investment income $ 347 NOTE 8 BENEFICIAL INTEREST IN AGENCY FUND HELD BY THIRD PARTY: The Organization is the beneficiary under a Designated Agency Fund Agreement with the Charlottesville Area Community Foundation. The agency fund has been recorded in accordance with generally accepted accounting principles which state that if a community foundation receives assets from a nonprofit organization that specifies itself as the beneficiary, the transfer is not a contribution received by the community foundation even if the variance power is explicitly stated in the gift instrument. The assets of the fund are included in the Statement of Financial Position as a beneficial interest in agency fund held by third party. Distributions are to be paid as the two organizations agree upon. In addition, the fund is charged a quarterly administrative fee on the fund balance. The changes in the agency fund are as follows for the year ended December 31, 2011: Beneficial interest - Beginning of year $ - Change in value of beneficial interest: Contributions to the fund 25,000 Investment returns 725 Administrative fees (797) Beneficial interest - End of year $ 24,928 9

15 Notes to Financial Statements At December 31, 2011 (continued) NOTE 9 FAIR VALUE MEASUREMENTS: Fair value for investments is determined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The threelevel fair value hierarchy prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Building Goodness Foundation is providing the following information related to its investments: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) December 31, 2011 Beneficial Interest in Community Foundation $ 24,928 $ - $ - $ 24,928 Total $ 24,928 $ - $ - $ 24,928 The Level 3 assets represent the beneficial interest in the Charlottesville Area Community Foundation s (CACF) investment pool. The valuation of this investment is based upon the inputs used by CACF to value the underlying assets. The following table provides further details of the Level 3 fair value measurements. 10

16 Notes to Financial Statements At December 31, 2011 (continued) NOTE 9 FAIR VALUE MEASUREMENTS: (continued) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Beneficial Interest in Community Foundation Beginning balance $ - Total gains or losses (realized/unrealized) Included in changes in net assets (72) Purchases 25,000 Ending balance $ 24,928 Total amount of gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to assets still held at reporting date $ (72) NOTE 10 - DONATED MATERIALS AND SERVICES: Contributions of donated noncash assets are recorded at their fair market values in the period received. Contributions of donated services that create or enhance non-financial assets or that require specialized skills, which are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation, are recorded at their fair values in the year received. Donated materials of $11,513 and services of $100,249 for a total of $111,762 were received during the year. NOTE 11 SUBSEQUENT EVENTS: In preparing these financial statements, management of the Organization has evaluated events and transactions for potential recognition or disclosure through June 8, 2012, the date the financial statements were available to be issued. 11

17 - Supplemental Information -

18 Combining Schedule of Financial Position At December 31, 2011 Building Building Goodness Goodness Foundation in April Combined Assets Current assets: Cash and cash equivalents $ 974,330 $ 72,880 $ 1,047,210 Accounts receivable Prepaid expenses 4,018-4,018 Total current assets $ 978,613 $ 72,880 $ 1,051,493 Equipment: Office equipment $ 8,356 $ - $ 8,356 Less: accumulated depreciation (8,356) - (8,356) Net equipment $ - $ - $ - Other assets: Beneficial interest in agency fund held by third party $ 24,928 $ - $ 24,928 Total assets $ 1,003,541 $ 72,880 $ 1,076,421 Liabilities and Net Assets Current liabilities: Accounts payable $ 9,163 $ - $ 9,163 Payroll liabilities 7,973-7,973 Total liabilities $ 17,136 $ - $ 17,136 Net assets: Unrestricted $ 163,573 $ - $ 163,573 Temporarily restricted 802,749 72, ,629 Permanently restricted 20,083-20,083 Total net assets $ 986,405 $ 72,880 $ 1,059,285 Total liabilities and net assets $ 1,003,541 $ 72,880 $ 1,076,421 12

19 Combining Statement of Activities For the Year Ended December 31, 2011 Building Building Goodness Goodness Foundation in April Combined Unrestricted revenues, gains and other support: Individual contributions $ 150,921 $ - $ 150,921 Foundation grants 111, ,225 Corporate/Business contributions 38,486-38,486 Religious and community contributions 7,550-7,550 Gifts in kind 111, ,762 Program service income 5,360-5,360 Administrative service fees 2,058-2,058 Miscellaneous income Investment income 2,129-2,129 Net assets released from restrictions 1,184,528 71,329 1,255,857 Total unrestricted revenues, gains and other support $ 1,614,786 $ 71,329 $ 1,686,115 Expenses: Salaries and wages $ 297,929 $ - $ 297,929 Payroll taxes 22,270-22,270 Gifts in kind 111, ,762 Dues and fees 6,128 3,439 9,567 Equipment purchases, maintenance and depreciation 6,209-6,209 Business insurance 3,124-3,124 Meetings and events 50,537 5,631 56,168 Miscellaneous expenses Occupancy expenses 8,290 2,932 11,222 Office supplies and expenses 6, ,185 Postage and shipping 6,242-6,242 Printing, copying and reproduction 15,363 3,391 18,754 Seminars and training 24,638-24,638 Professional services 14, ,734 Professional development 1,707-1,707 Public education 4,206-4,206 Advertising 10,116-10,116 Telephone/internet 3,039-3,039 Travel 295, ,779 Direct project expenses 809,749 55, ,082 Total expenses $ 1,697,485 $ 71,329 $ 1,768,814 Change in unrestricted net assets $ (82,699) $ - $ (82,699) Temporarily restricted net assets: Individual contributions $ 196,561 $ 67,255 $ 263,816 Trip participation donations 173, ,472 Corporate/Business contributions 15,902-15,902 Religious and community contributions 10,505-10,505 Foundation grants 265, ,675 Governmental grants - 19,639 19,639 Investment income Miscellaneous income Net assets released from restrictions (1,184,528) (71,329) (1,255,857) Change in temporarily restricted net assets $ (522,413) $ 16,080 $ (506,333) Net assets at beginning of year 1,591,517 56,800 1,648,317 Net assets at end of year $ 986,405 $ 72,880 $ 1,059,285 13