VISIONS/SERVICES FOR THE BLIND AND VISUALLY IMPAIRED FINANCIAL STATEMENTS AND AUDITOR S REPORT SEPTEMBER 30, 2016

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1 FINANCIAL STATEMENTS AND AUDITOR S REPORT

2 TABLE OF CONTENTS Independent Auditor s Report Exhibit A - Balance Sheet B - Statement of Activities C - Statement of Functional Expenses D - Statement of Cash Flows Notes to Financial Statements

3 Independent Auditor s Report Board of Directors VISIONS/Services for the Blind and Visually Impaired Report on Financial Statements We have audited the accompanying financial statements of VISIONS/Services for the Blind and Visually Impaired, which comprise the balance sheet as of September 30, 2016 and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Auditors Auditors and Consultants and Consultants Serving Serving the Health the Health Care & Care Not for & Not Profit for Sectors Profit Sectors 655 Third 655 Avenue, Third Avenue, 12th Floor, 12th New Floor, York, New NY York, NY (212) (212) / Fax (212) / Fax (212) / /

4 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of VISIONS/Services for the Blind and Visually Impaired as of September 30, 2016, the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited VISIONS/Services for the Blind and Visually Impaired September 30, 2015 financial statements and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 22, In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2015 is consistent, in all material respects, with the audited financial statements from which it has been derived. 2. December 20, 2016

5 EXHIBIT A BALANCE SHEET AND ASSETS Cash $ 995,859 $ 351,367 Investments (Note 4) 81,127,305 78,687,037 Interest and dividends receivable 40,299 48,992 Accounts receivable 914, ,172 Grants receivable (Note 3) 487,278 80,000 Prepaid expenses and other assets 120, ,976 Beneficial interest in perpetual trusts (Notes 4 and 10) 3,392,384 3,271,788 Fixed assets - net (Note 5) 1,734,114 1,442,716 Total assets $ 88,812,481 $ 84,796,048 LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued expenses $ 329,517 $ 273,891 Advances 211, ,516 Total liabilities 540, ,407 Net assets (Exhibit B) Unrestricted 8,898,744 7,877,701 Temporarily restricted (Note 6) 681, ,362 Permanently restricted (Note 7) 78,691,210 76,191,578 Total net assets 88,271,648 84,318,641 Total liabilities and net assets $ 88,812,481 $ 84,796,048 See independent auditor's report. The accompanying notes are an integral part of these statements.

6 EXHIBIT B STATEMENT OF ACTIVITIES YEAR ENDED (With Summarized Financial Information for the Year Ended September 30, 2015) Temporarily Permanently Total Unrestricted Restricted Restricted Revenues, gains (losses) and other support Contributions and bequests $ 147,813 $ 1,415,957 $ 1,563,770 $ 1,003,585 Community events $ 116,080 Less direct expenses of community events (23,351) 92,729 92,729 95,757 Government support 161,465 2,994,600 3,156,065 3,153,725 Special events 106,835 Less direct expenses of special events (50,004) 56,831 56,831 91,664 VCB contributions 14,984 14,984 20,880 Interest and dividends 125,108 1,628,585 1,753,693 2,044,232 Net realized and unrealized gains (losses) on investments (Note 4) 248,068 1,452,215 $ 3,379,036 5,079,319 (3,132,368) Gain (loss) on beneficial interest in perpetual trusts (Note 4) 120, ,596 (301,596) Donated services (Note 2) 42,540 42,540 Miscellaneous revenues 47,000 47,000 31,148 Net assets released from restrictions (Note 6) 8,059,025 (7,059,025) (1,000,000) Total revenues, gains and other support 8,995, ,332 2,499,632 11,927,527 3,007,027

7 EXHIBIT B -2- STATEMENT OF ACTIVITIES YEAR ENDED (With Summarized Financial Information for the Year Ended September 30, 2015) Temporarily Permanently Total Unrestricted Restricted Restricted Expenses (Exhibit C) Program services VCB $ 1,165,611 $ 1,165,611 $ 1,046,946 Community services 4,452,707 4,452,707 4,248,673 Selis Manor 1,412,259 1,412,259 1,320,831 Total program services 7,030,577 7,030,577 6,616,450 Supporting services Management and general 682, , ,360 Fundraising 261, , ,295 Total supporting services 943, , ,655 Total expenses 7,974,520 7,974,520 7,510,105 Change in net assets (Exhibit D) 1,021,043 $ 432,332 $ 2,499,632 3,953,007 (4,503,078) Net assets - beginning of year 7,877, ,362 76,191,578 84,318,641 88,821,719 Net assets - end of year (Exhibit A) $ 8,898,744 $ 681,694 $ 78,691,210 $ 88,271,648 $ 84,318,641 See independent auditor's report. The accompanying notes are an integral part of these statements.

8 EXHIBIT C STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED (With Summarized Financial Information for the Year Ended September 30, 2015) Program Services Supporting Services Total Community Selis Management Fund- Direct Expenses VCB Services Manor Total and General Raising of Events Total Salaries $ 417,600 $ 2,606,244 $ 735,403 $ 3,759,247 $ 410,619 $ 167,028 $ 577,647 $ 4,336,894 $ 4,143,320 Employee benefits 153,231 1,133, ,693 1,582, ,402 72, ,720 1,836,745 1,608,846 Total salaries and employee benefits 570,831 3,739,345 1,031,096 5,341, , , ,367 6,173,639 5,752,166 Occupancy (Note 2) 2,831 21,285 5,514 29,630 5,735 1,397 7,132 36,762 31,146 Insurance 32,264 68,586 15, ,105 10,666 2,598 13, , ,390 Utilities 92,869 16,547 2, ,760 2, , , ,782 Telephone 9,770 22,209 12,217 44,196 3, ,594 48,790 45,795 Postage ,891 1,152 14,670 1, ,483 16,153 22,378 Printing ,081 5,552 18, ,369 7,318 25,419 29,677 Subscriptions, dues and conferences 1,890 15,476 5,941 23,307 3,526 2,400 5,926 29,233 27,936 Investment management fees (Note 4) 469, , , ,726 Transportation 38,738 32,340 3,202 74,280 1,015 1,269 2,284 76,564 83,204 Food 117,527 14, , , , ,040 Laundry 6, ,247 7,247 4,278 Professional fees (includes donated services of $42,540) 54, ,644 50, ,606 40, , , ,170 Special events admissions and donor costs $ 72,813 72,813 72,813 63,252 Awards Office supplies 1,961 6,693 4,327 12,981 1, ,300 15,281 22,047 Program supplies and expenses 6, ,531 15, , , ,977 Repairs and maintenance 137,169 30,676 33, ,109 5,181 1,262 6, , ,840 Staff recruitment and development 2,050 6,953 3,500 12,503 1, ,329 14,832 17,656 Depreciation 83,842 27,990 28, ,276 7,541 1,836 9, , ,971 Miscellaneous 5,063 14,549 34,334 53,946 3, ,153 59,099 75,393 Total expenses 1,165,611 4,452,707 1,412,259 7,030,577 1,152, ,108 73,355 1,486,925 8,517,502 8,068,829 Less expenses deducted directly from revenues on the statement of activities (469,627) (73,355) (542,982) (542,982) (558,724) Total expenses reported by function on the statement of activities (Exhibit B) $ 1,165,611 $ 4,452,707 $ 1,412,259 $ 7,030,577 $ 682,835 $ 261,108 $ - $ 943,943 $ 7,974,520 $ 7,510,105 See independent auditor's report. The accompanying notes are an integral part of these statements.

9 EXHIBIT D STATEMENT OF CASH FLOWS YEARS ENDED AND Cash flows from operating activities Change in net assets (Exhibit B) $ 3,953,007 $ (4,503,078) Adjustments to reconcile change in net assets to net cash used by operating activities Depreciation 149, ,971 Net realized and unrealized (gains) loss on investments (5,548,946) 2,638,642 Loss (gain) on beneficial interest in perpetual trusts (120,596) 301,596 Decrease (increase) in assets Interest and dividends receivable 8,693 (4,142) Accounts receivable (109,711) (137,908) Grants receivable (407,278) (80,000) Prepaid expenses and other assets (11,383) 4,020 Increase in liabilities Accounts payable and accrued expenses 55,626 35,164 Advances 7,800 2,146 Net cash used by operating activities (2,023,135) (1,594,589) Cash flows from investing activities Acquisition of fixed assets (441,051) (468,162) Proceeds from sales of investments 23,642,903 26,990,767 Purchases of investments (20,534,225) (24,897,205) Net cash provided by investing activities 2,667,627 1,625,400 Net change in cash 644,492 30,811 Cash - beginning of year 351, ,556 Cash - end of year $ 995,859 $ 351,367 See independent auditor's report. The accompanying notes are an integral part of these statements.

10 NOTE 1 - NATURE AND PURPOSE OF ORGANIZATION VISIONS/Services for the Blind and Visually Impaired ( VISIONS ) is a nonprofit rehabilitation and social service organization whose purpose is to develop and implement programs to: assist people of all ages who are blind or visually impaired to lead independent and active lives in their homes and communities; and educate the public to understand the capabilities and needs of people who are blind or visually impaired so that they may be integrated into all aspects of community life. VISIONS fulfills its purpose by providing: Individualized rehabilitation training at home or in the community and in group settings Social services Employment training and job development Group and community education and activities VISIONS programs focus on individuals with low income primarily in the Greater New York Metropolitan area who are blind or visually impaired, including those with multiple disabilities, elderly, limited-english speakers and culturally diverse consumers. In connection with the services it provides, VISIONS operates a training facility renamed VISIONS Center on Blindness ( VCB ). This facility was formerly known as Vacation Camp for the Blind. VCB is located in Spring Valley, New York. In addition, VISIONS is the service provider for the residents and guests of the building at Selis Manor located in New York City. VISIONS is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, and has been classified as a public foundation as defined in Section 509(a)(1) of the Internal Revenue Code ( IRC ), thereby qualifying donors for the maximum charitable deduction allowed under the IRC. VISIONS is funded primarily through investment income, contributions and government support.

11 2. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of accounting - The financial statements are prepared on the accrual basis of accounting. Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Investments - Investments are stated at fair value. The investments are held in pooled accounts with the exception of those relating to the Fund for the Blind and the Selis Manor Fund. Investments, in general, are exposed to various risks such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investments, it is at least reasonably possible that changes in the values of investment securities will occur in the near term, based on market fluctuations, and that such changes could materially affect the amounts reported in the financial statements. Beneficial interest in perpetual trusts - Beneficial interests in perpetual trusts are reported at fair value. Fair Value Measurements Fair Value Measurements establishes a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair 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 are described below. Level 1 inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that VISIONS 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.

12 3. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fair Value Measurements (continued) 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. 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. There have been no changes in the methodologies used at September 30, 2016 as compared to those used at September 30, U.S. Treasury and government agency obligations, exchange traded funds, and equity securities - Valued at the closing price reported on the active market on which the individual securities are traded. Corporate obligations and mortgage-backed securities - Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the creditworthiness of the issuer. Mutual funds - Valued at the net asset value ( NAV ) of shares held at year-end. Beneficial interest in perpetual trusts - Valued based on the fair value of the underlying assets. 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 VISIONS 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. See Note 3 for the table that sets forth by level, within the fair value hierarchy, the assets at fair value as of September 30, 2016 as compared to the prior year. Accounts receivable - VISIONS records receivables based on established rates or contracts for services provided. Interest is not charged on overdue receivables.

13 4. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Grants receivable - Unconditional promises to give that are expected to be collected within one year are recorded at fair value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on these amounts are computed using risk-adjusted interest rates applicable to the years in which the promises are received. Amortization of the discounts is included in contribution revenue. Conditional promises to give are not included as support until the conditions are substantially met. Allowance for doubtful accounts - VISIONS has determined that no allowance for uncollectible accounts and receivable is necessary as of September 30, Such estimate is based on management s assessments of the creditworthiness of its funding sources, the aged basis of its receivables, as well as current economic conditions, subsequent collections and historical information. Fixed assets - Acquisitions with a cost of $500 and an estimated useful life greater than one year are capitalized at cost. Depreciation is provided on the straight-line method over their estimated lives. Advances - Advances represent grant funds received in advance, attributable to future periods. Unrestricted net assets - Unrestricted net assets include funds having no restriction as to use or purpose imposed by donors. The Board of Directors of VISIONS has full discretion over the use of unrestricted net assets. Temporarily and permanently restricted net assets - Temporarily restricted net assets are those whose use by VISIONS has been limited by donors to a specific time period or purpose. In addition, earnings on certain donor-restricted endowment funds are classified as temporarily restricted, pursuant to the New York Prudent Management of Institutional Funds Act (NYPMIFA) until appropriated for expenditure by the Board of Directors (Note 7). Permanently restricted net assets have been restricted by donors to be maintained by VISIONS in perpetuity. Contributions - Unconditional contributions, including promises to give cash and other assets, are reported at fair value at the date the contribution is received. The gifts are reported as temporarily or permanently 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 as unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

14 5. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Government support - Revenues from government agencies are recognized when earned. Expense-based grants are recognized as allowable expenses are incurred. Performance-based grants are recognized as milestones are achieved. No provision for any disallowances is reflected in the financial statements, since management does not anticipate any material adjustments. VCB contributions - VCB s contributions for services are based upon ability to pay as determined by the participant. Donated services - The estimated fair value of donated services, which consists of donated professional fees, is recognized in the financial statements as revenue and expenses in the period in which the services were provided. Occupancy expense - Occupancy expense for the year ended September 30, 2016 consists of commercial condominium maintenance charges. Functional allocation of expenses - The costs of providing services have been summarized on a functional basis. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Summarized financial information - The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with VISIONS financial statements for the year ended September 30, 2015, from which the summarized information was derived. Uncertainty in income taxes - VISIONS has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements. Periods ending September 30, 2013 and subsequent remain subject to examination by applicable taxing authorities. Subsequent events - Subsequent events have been evaluated through December 20, 2016, which is the date the financial statements were available to be issued. Reclassification - Grants receivable have been segregated from accounts receivable as presented for September 30, 2015 to conform to the September 30, 2016 presentation.

15 6. NOTE 3 - GRANTS RECEIVABLE Grants receivable that are payable in more than one year have been discounted to their present value using the discount rate of 3%. The receivable is due as follows: 2017 $ 290, , , ,643 Less discount to present value (18,365) Net realizable value $ 487,278 NOTE 4 - INVESTMENTS AND OTHER ASSETS REPORTED AT FAIR VALUE 2016 Level 1 Level 2 Total Corporate obligations $ - $ 2,727,213 $ 2,727,213 U.S. Treasury and government agency obligations 2,846,799 2,846,799 Mortgage-backed securities 98,244 98,244 Equity securities Consumer discretionary 5,996,509 5,996,509 Consumer staples 6,573,025 6,573,025 Energy 4,405,440 4,405,440 Financials 7,988,040 7,988,040 Health care 8,938,462 8,938,462 Industrials 3,928,778 3,928,778 Information technology 12,002,875 12,002,875 Materials 2,499,921 2,499,921 Real Estate 855, ,413 Telecommunication services 1,145,541 1,145,541 Utilities 416, ,289 Total equity securities 54,750,293 54,750,293

16 7. NOTE 4 - INVESTMENTS AND OTHER ASSETS REPORTED AT FAIR VALUE 2016 Level 1 Level 2 Total Exchange traded funds Equity funds $ 2,329,192 $ 2,329,192 Fixed income funds 3,807,145 3,807,145 Total exchange traded funds 6,136,337 6,136,337 Mutual funds Domestic 2,710,984 2,710,984 Foreign 352, ,453 Total mutual funds 3,063,437 3,063,437 Total investments reported on the fair value hierarchy $ 66,796,866 $ 2,825,457 69,622,323 Cash and cash equivalents 11,504,982 Total investments $ 81,127, (Reclassified) Level 1 Level 2 Total Corporate obligations $ - $ 4,234,312 $ 4,234,312 U.S. Treasury and government agency obligations 1,038,327 1,038,327 Mortgage-backed securities 183, ,842

17 8. NOTE 4 - INVESTMENTS AND OTHER ASSETS REPORTED AT FAIR VALUE (continued) 2015 (Reclassified) Level 1 Level 2 Total Equity securities Consumer discretionary $ 5,673,706 $ 5,673,706 Consumer staples 8,181,348 8,181,348 Energy 4,453,093 4,453,093 Financials 7,931,814 7,931,814 Health care 11,295,915 11,295,915 Industrials 3,874,160 3,874,160 Information technology 10,795,623 10,795,623 Materials 2,476,121 2,476,121 Telecommunication services 1,869,651 1,869,651 Utilities 326, ,529 Total equity securities 56,877,960 56,877,960 Exchange traded funds Equity funds 2,130,235 2,130,235 Fixed income funds 2,681,300 2,681,300 Total exchange traded funds 4,811,535 4,811,535 Mutual funds Domestic 3,575,516 3,575,516 Foreign 305, ,455 Total mutual funds 3,880,971 3,880,971 Total investments reported on the fair value hierarchy $ 66,608,793 $ 4,418,154 71,026,947 Cash and cash equivalents 7,660,090 Total investments $ 78,687,037

18 9. NOTE 4 - INVESTMENTS AND OTHER ASSETS REPORTED AT FAIR VALUE (continued) The presentation of the fair value hierarchies table as presented for 2015 has been reclassified to conform with the 2016 presentation. Level Beneficial interest in perpetual trusts $ 3,392,384 $ 3,271,788 Level 3 Gains and Losses The table below sets forth a summary of changes in the fair value of the Level 3 assets for the years ended September 30, 2016 and 2015: Beneficial Interest in Perpetual Trusts Balance, beginning of year $ 3,271,788 $ 3,573,384 Unrealized gain on assets held at year-end 120,596 (301,596) Balance, end of year $ 3,392,384 $ 3,271,788 Investment management fees of $469,627 and $493,726, respectively, for the years ended September 30, 2016 and 2015 have been netted against net realized and unrealized gains on investments.

19 10. NOTE 5 - FIXED ASSETS Estimated Useful Lives Land $ 94,500 $ 94,500 Condominium 1,100,000 1,100, years Condominium improvements 481, , years VCB building, equipment and vehicles 2,326,106 2,291, years Furniture, fixtures, and office equipment 210, , years Selis Manor improvements 76,891 76, years Selis Manor office equipment 152, , years Construction in progress 772, ,890 5,214,066 4,813,994 Less accumulated depreciation (3,479,952) (3,371,278) $ 1,734,114 $ 1,442,716 Construction in Progress VISIONS Board of Directors has approved a project to build a Vocational Rehabilitation Center building on the VISIONS Center on Blindness campus. VISIONS has contracted with an architect and Construction Managers. Total project costs are estimated to be approximately $9 million. Management anticipates completion of the project in the second half of calendar year The project will be funded through contributions, grants and distribution from the Fund for the Blind.

20 11. NOTE 6 - TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets are available for the following purposes: Community services $ 505,444 $ 35,195 VCB 150,000 75,000 Selis Manor 26, ,167 $ 681,694 $ 249,362 During the year, restricted net assets were released from restrictions by incurring expenses satisfying the restricted purposes as follows: Temporarily restricted Community services $ 2,655,738 $ 2,598,779 Selis Manor 911, ,665 VCB 411, ,100 General operations 3,080,800 2,644,239 Total $ 7,059,025 $ 6,319,783

21 12. NOTE 7 - PERMANENTLY RESTRICTED NET ASSETS Permanently restricted net assets are restricted to investments to be held in perpetuity, the income except for the net appreciation (depreciation) on the assets of the Fund for the Blind from which is expendable for general support and are comprised of the following: Fund for the Blind $ 69,122,972 $ 67,095,324 Ilma F. Kern Fund 2,371,846 2,196,152 Selis Manor Fund (Note 9) 1,300,000 1,300,000 Edna F. Blum Fund 1,275,186 1,180,310 Ilma F. Kern Fund of Selis Manor 865, ,275 Wick Stern Fund 244, ,006 Other endowment funds 118, ,723 Total endowment funds 75,298,826 72,919,790 Martin S. Paine Perpetual Trust 1,765,793 1,687,139 Adrian Jackson Perpetual Trust 881, ,824 Maude Aguilar Leland Perpetual Trust 733, ,676 Charles H. Ruhl Perpetual Trust 11,631 11,149 Total perpetual trusts 3,392,384 3,271,788 Total permanently restricted net assets $ 78,691,210 $ 76,191,578 All net appreciation (depreciation) on the assets of the Fund for the Blind is permanently restricted.

22 13. NOTE 7 - PERMANENTLY RESTRICTED NET ASSETS (continued) General VISIONS permanently restricted net assets consist of 11 endowment funds whose assets are to be held in perpetuity. The income from the assets can be used for general operations. As required by generally accepted accounting principles (GAAP), net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Interpretation of Relevant Law The Board of Directors of the organization adopted the New York Prudent Management of Institutional Funds Act (NYPMIFA). NYPMIFA moves away from the historic dollar value standard, and permits charities to apply a spending policy to endowments based on certain specified standards of prudence. The organization is governed by the NYPMIFA spending policy, which establishes a maximum prudent spending limit of 7% of the average of its previous five years balance. As a result of this interpretation, VISIONS classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by VISIONS in a manner consistent with the standard of prudence prescribed by NYPMIFA. Return Objectives, Strategies Employed and Spending Policy The objective of VISIONS is to maintain the principal endowment funds at the original amount designated by the donor while generating income to support its programs. The investment policy to achieve this objective is to invest in low-risk securities. Investment income earned in relation to the endowment funds is recorded as temporarily restricted income and appropriated for the expenditures for which the endowment fund was established. Funds with Deficiencies VISIONS does not have any funds with deficiencies.

23 14. NOTE 7 - PERMANENTLY RESTRICTED NET ASSETS (continued) Endowment Net Asset Composition by Type of Fund as of September 30, 2016 Temporarily Restricted Permanently Restricted Total Endowment net assets, beginning of year $ 72,919,790 $ 72,919,790 Interest and dividends $ 1,628,585 1,628,585 Net realized and unrealized gains/(loss) - net 1,452,215 3,379,036 4,831,251 Net assets released from restrictions (1,000,000) (1,000,000) Appropriated for expenditure (3,080,800) (3,080,800) Endowment net assets, end of year $ - $ 75,298,826 $ 75,298,826 Endowment Net Asset Composition by Type of Fund as of September 30, 2015 Temporarily Restricted Permanently Restricted Total Endowment net assets, beginning of year $ 76,676,569 $ 76,676,569 Interest and dividends $ 1,908,829 1,908,829 Net realized and unrealized gains (losses) - net 735,410 (3,756,779) (3,021,369) Appropriated for expenditure (2,644,239) (2,644,239) Endowment net assets, end of year $ - $ 72,919,790 $ 72,919,790 Independent trustees, when requested by VISIONS, can release from restriction a portion of the Fund for the Blind s permanently restricted net assets. For the year ended September 30, 2016, $1,000,000 was released for the purposes of the vocational rehabilitation center building on the VISIONS Center on Blindness campus (Note 5).

24 15. NOTE 8 - PENSION VISIONS sponsors a defined contribution pension program under Section 403(b) of the Internal Revenue Code. Employees may make voluntary contributions to the plan. VISIONS contributes 5% of an eligible employee s salary provided that such employee has been employed full time by VISIONS for at least one year. For the years ended September 30, 2016 and 2015, such contributions resulted in expenses of $180,099 and $168,263, respectively. NOTE 9 - CONCENTRATIONS AND CONTINGENCIES 1. Financial instruments which potentially subject VISIONS to a concentration of credit risk are cash accounts with major financial institutions in excess of FDIC insurance limits. 2. Effective February 1, 2001, The Associated Blind Housing Development Fund Corporation ( HFDC ) and VISIONS entered into a service provider contract. The term of the agreement is for twenty-five years, terminating January 31, 2026, with an annual automatic renewal unless six months prior notice is given by either party. To maintain the contract, VISIONS is required to provide social, recreational and volunteer services for the residents and guests of Selis Manor, a housing complex located on West 23rd Street in Manhattan. Should the level and/or quality of service provided be deemed unsatisfactory, under certain conditions, VISIONS may be required to return the initially funded project capital. The fund consists of $1,300, VISIONS from time to time is subject to audits by government agencies, a number of which fund certain programs and services provided by VISIONS. On April 20, 2016 VISIONS was notified by the NYC Department for the Aging (DFTA) that they will be conducting an audit for the VISIONS innovative senior center program for the year ended June 30, The auditors contracted by DFTA presented a draft report which reported no questioned costs. A final report has not yet been issued.

25 16. NOTE 10 - BENEFICIAL INTEREST IN PERPETUAL TRUSTS Four perpetual trusts were established for the benefit of VISIONS. Under the terms of the trusts, the income generated is payable to VISIONS. The contributions were classified as permanently restricted support and the annual distributions from the trusts are reported as investment income. NOTE 11 - RELATED-PARTY TRANSACTIONS The firms providing investment advisory services to The Fund for the Blind included Board members, who were also Trustees of The Fund for the Blind at various times during the year ended September 30, Fees paid for investment advisory fees during those periods totaled approximately $374,525.