Institute for Humane Studies. Financial Statements and Independent Auditors Report. August 31, 2009 and 2008

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1 Financial Statements and Independent Auditors Report

2 Financial Statements Contents Report of Independent Auditors 1 Audited Financial Statements Statements of Financial Position... 2 Statements of Activities. 3-4 Statements of Cash Flows Supplemental Information Schedules of Functional Expenses

3 Rogers & Company PLLC Certified Public Accountants 8300 Boone Boulevard Suite 600 Vienna, Virginia voice facsimile To the Board of Directors Institute for Humane Studies INDEPENDENT AUDITORS REPORT We have audited the accompanying statement of financial position of Institute for Humane Studies (the Institute) as of August 31, 2009, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Institute s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Institute as of August 31, 2008, were audited by other auditors whose report dated December 9, 2008 expressed an unqualified opinion on those 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 provide 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 Institute for Humane Studies at August 31, 2009, 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 basic financial statements taken as a whole. The supplemental information included at page 19 is presented for purposes of additional analysis and is not required as part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 2009 basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The supplemental information at page 20 was included in the 2008 basic financial statements, which were audited by other auditors whose report dated December 9, 2008 expressed an unqualified opinion on those statements. Vienna, Virginia December 29, 2009

4 Statements of Financial Position Assets Cash and cash equivalents $ 1,401,571 $ 751,565 Receivables 1,111,171 1,116,739 Prepaid expenses and deposits 29,052 69,723 Investments 179,409 1,318,926 Property and equipment, net 646, ,736 Other assets 30,652 30,652 Total assets $ 3,398,587 $ 3,963,341 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $ 135,581 $ 326,911 Gift annuities payable 27,425 32,567 Deferred rent 22,496 - Total liabilities 185, ,478 Net Assets Unrestricted 973,330 1,325,699 Temporarily restricted 2,122,261 2,160,670 Permanently restricted 117, ,494 Total net assets 3,213,085 3,603,863 Total liabilities and net assets $ 3,398,587 $ 3,963,341 See accompanying notes. 2

5 Statement of Activities For the Year Ended August 31, 2009 Temporarily Permanently Unrestricted Restricted Restricted Total Revenue and Support Contributions $ 4,545,475 $ 1,513,266 $ - $ 6,058,741 Administrative fees 742, ,818 Investment loss (22,393) - - (22,393) Release from restrictions 1,551,675 (1,551,675) - - Total revenue and support 6,817,575 (38,409) - 6,779,166 Expenses Program services 6,159, ,159,978 Management and general 514, ,500 Fundraising 495, ,466 Total expenses 7,169, ,169,944 Change in Net Assets (352,369) (38,409) - (390,778) Net Assets, beginning of year 1,325,699 2,160, ,494 3,603,863 Net Assets, end of year $ 973,330 $ 2,122,261 $ 117,494 $ 3,213,085 See accompanying notes. 3

6 Statement of Activities For the Year Ended August 31, 2008 Temporarily Permanently Unrestricted Restricted Restricted Total Revenue and Support Contributions $ 3,983,292 $ 1,781,299 $ - $ 5,764,591 Administrative fees 738, ,683 Investment income 50,060 27,883 2,304 80,247 Other income 5, ,425 Release from restrictions 1,290,493 (1,290,493) - - Total revenue and support 6,067, ,689 2,304 6,588,946 Expenses Program services 5,966, ,966,082 Management and general 389, ,122 Fundraising 544, ,509 Total expenses 6,899, ,899,713 Change in Net Assets (831,760) 518,689 2,304 (310,767) Net Assets, beginning of year 2,157,459 1,641, ,190 3,914,630 Net Assets, end of year $ 1,325,699 $ 2,160,670 $ 117,494 $ 3,603,863 See accompanying notes. 4

7 Statements of Cash Flows For the Years Ended Cash Flows from Operating Activities Change in net assets $ (390,778) $ (310,767) Adjustments to reconcile change in net assets to net cash used in operating activities: Depreciation and amortization 198, ,714 Realized and unrealized loss on investments 39,430 47,875 Donated stock (1,039) (119,641) Change in operating assets and liabilities: Decrease (increase) in receivables 5,568 (869,147) Decrease (increase) in prepaid expenses and deposits 40,671 (41,199) Increase in other assets - (27,652) (Decrease) increase in accounts payable and accrued expenses (191,330) 72,909 Increase in deferred rent 22,496 - Net cash used in operating activities (276,295) (1,127,908) Cash Flows from Investing Activities Proceeds from sale of investments 1,186,203 1,708,900 Proceeds from sale of donated investments - 119,641 Purchase of investments (85,077) (125,272) Acquisition of property and equipment (169,683) (635,166) Net cash provided by investing activities 931,443 1,068,103 Cash Flows from Financing Activities Payments under charitable gift annuities (5,142) (7,023) Net cash used in financing activities (5,142) (7,023) Net Increase (Decrease) in Cash and Cash Equivalents 650,006 (66,828) Cash and Cash Equivalents, beginning of year 751, ,393 Cash and Cash Equivalents, end of year $ 1,401,571 $ 751,565 Supplemental Information Nocash investing activities: Donated stock $ 1,039 $ 119,641 See accompanying notes. 5

8 1. Nature of Operations The Institute for Humane Studies (the Institute) was incorporated 1961 to discover, develop, and support students, scholars, and other intellectuals who maintain the highest standard of academic excellence and who share an interest in the principles of the classical liberal tradition upon which the Institute is firmly grounded. These activities are funded primarily through contributions. 2. Summary of Significant Accounting Policies Basis of Accounting and Presentation The Institute's financial statements are prepared on the accrual basis of accounting and in accordance with generally accepted accounting principles for not-for-profit organizations. Net assets are reported based on the presence or absence of donor-imposed restrictions as follows: Unrestricted net assets represent funds that are not subject to donor-imposed stipulations and are available for support of the Institute s operations. At August 31, 2009 and 2008, the Board of Directors designated $884,587 as a reserve for future use. Temporarily restricted net assets represent funds subject to donor-imposed restrictions that are met either by actions of the Institute or the passage of time. There were $2,122,261 and $2,160,670 in temporarily restricted net assets at August 31, 2009 and 2008, respectively. Permanently restricted net assets represent funds in which the principal must be held in perpetuity, while the earnings may be available for the general operations or restricted purposes imposed by the donors. There was $117,494 in permanently restricted net assets at. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Institute considers as cash equivalents all highly liquid investments, which can be converted into known amounts of cash and have a maturity period of ninety days or less at the time of purchase. Investments Investments are comprised of auction rate securities, mutual funds, and common stock of a privately held corporation for which there is no readily determinable fair value. Investments are stated at fair value, based on quoted market prices, except for the stock of a privately held company which value is recorded at the lower of cost or market. 6

9 2. Summary of Significant Accounting Policies (continued) Investments (continued) The Institute records contributed investments for which there is no readily determinable fair value at the donor s appraised fair value on the date of donation. The Institute carries these investments at the lower of contributed value or the estimated fair value. All realized and unrealized gains and losses are included in investment income in the accompanying statements of activities. Investment earnings are comprised of dividend and interest income and realized and unrealized gains and losses. Receivables Receivables consist of grants and contributions receivable due from various organizations and other general receivables. No allowance for doubtful accounts is recorded as the management believes that all receivables are fully collectible. Property and Equipment Property and equipment purchased at a cost of $500 or more and an estimated life exceeding one year are capitalized and recorded at acquisition cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten years, with no salvage value. Leasehold improvements are stated at cost and are amortized using the straight-line method over the shorter of their estimated useful lives or the lease term. Grants and Fellowships Student research awards made by the Institute are recorded in the accompanying statements of financial position as accounts payable and accrued expenses and as an expense at the time written acceptance of the award is received and the student provides a tuition bill or proof of enrollment. As of, all amounts had been paid out to students. Charitable Gift Annuities The Institute has received irrevocable gift annuities from several donors. The donors give the Institute a cash contribution, and in return the Institute agrees to make payments to the donor for the remaining life of the donor or the donor s beneficiary. A liability is recorded in the accompanying statements of financial position at the present value of future expected cash flows owed by the Institute under these agreements based on current rates and Internal Revenue Service s (IRS) actuarial tables for annuities. 7

10 2. Summary of Significant Accounting Policies (continued) Charitable Gift Annuities (continued) Actuarial gains or losses resulting from changes in assumptions used to calculate the liability for the present value of future annuity payments are recorded as increases or decreases in the respective net asset class on the accompanying statements of activities. Administrative fees are recognized as expenses are incurred. Upon the donor s death, any remaining liability is recognized as revenue. Revenue Recognition Grants and contributions are recorded as revenue and are considered to be available for unrestricted use unless specifically restricted by the donor. The Institute reports contributions and sponsorships as temporarily restricted support if they are received with donor or grantor 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 reported in the statements of activities as net assets released from restrictions. Unrestricted contributions and grants are reported as revenue in the year in which the payments are received and/or unconditional promises are made. Revenue recognized on contributions that have been committed to the Institute but have not been received is reflected as accounts receivable in the accompanying statements of financial position. Conditional promises to give are not recognized as support until the conditions are substantially met. Revenue from all other sources is recognized when earned. Fair Value Measurements Statement of Financial Accounting Standards No. 157, Fair Value Measurements, was adopted by the Institute effective September 1, This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. Level 2 is based upon observable inputs other than quoted market prices, and level 3 is based on unobservable inputs. This standard had no effect on the Institute s financial statements, but did result in additional disclosures in Note 6. 8

11 2. Summary of Significant Accounting Policies (continued) Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the accompanying statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Reclassifications Certain amounts in the 2008 financial statements have been reclassified to conform to the 2009 presentation. None of these reclassifications, however, affected the prior year change in net assets. Subsequent Events In preparing these financial statements, the Institute has evaluated events and transactions for potential recognition or disclosure through December 29, 2009, the date the financial statements were issued. 3. Concentration of Credit Risk Financial instruments that potentially subject the Institute to significant concentrations of credit risk consist of cash and investments. The Institute maintains cash deposits and investments with various financial institutions that may exceed insurable limits under the Federal Depository Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC). The Institute has not experienced any losses on its cash and investments to date as it relates to FDIC and SIPC insurance limits. Management periodically assesses the financial condition of these financial institutions and believes that the risk of any loss is minimal. 9

12 4. Receivables Receivables consist of the following at August 31: Receivable from related party $ 80,382 $ 365,708 Contribution receivable 975, ,500 Other 54, ,531 Total receivables $ 1,111,171 $ 1,116,739 All amounts are considered fully collectible and are due in less than a year. 5. Investments Investments consist of the following for the years ended August 31: Auction rate securities $ - $ 725,000 Fixed income mutual funds 117, ,585 Common stock of privately held company 62,353 80,112 Equity mutual fund - 79,229 Total investments $ 179,409 $ 1,318,926 Investment (loss) income consist of the following for the years ended August 31: Interest and dividends $ 17,037 $ 128,122 Realized loss (21,671) (22,988) Unrealized loss (17,759) (24,887) Total investment (loss) income $ (22,393) $ 80,247 10

13 6. Fair Value Measurements Fair value of assets measured on a recurring basis is as follows at August 31, 2009: Total fair value Quoted prices in active markets (level Significant other observable Significant unobservable inputs (level 3) Mutual funds $ 117,056 $ 117,056 $ - $ - Common stock 62, ,353 Total investments $ 179,409 $ 117,056 $ - $ 62,353 Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 includes auction rate securities and fixed income mutual funds. In certain cases where there is limited activity or less transparency around inputs to the valuation including alternative investments, securities are classified within level 3 of the valuation hierarchy. The Institute's level 3 securities include investments in common stock of a privately held company which value is recorded at the lower of cost or market. The following table is a rollforward of the fair value measurements using unobservable inputs (Level 3) as of August 31, 2009: Common Stock of Privately Held Company September 1, 2008 $ 80,112 Unrealized loss (17,759) August 31, 2009 $ 62,353 11

14 7. Property and Equipment The Institute held the following property and equipment at August 31: Furniture, fixtures and equipment $ 1,373,747 $ 1,204,064 Leasehold improvements 125, ,000 Total property and equipment 1,498,747 1,329,064 Less: accumulated depreciation and amortization (852,015) (653,328) Property and equipment, net $ 646,732 $ 675,736 Depreciation and amortization expense was $198,687 and $119,714 for the years ended, respectively. 8. Charitable Gift Annuities The Institute has received several irrevocable gift annuities with an approximate value of $104,217, which is included in cash and cash equivalents at both of August 31, 2009 and In return the Institute has agreed to pay the donors annual payments of approximately $5,142. At, the present value of the annuity payments, using discount rates between 7% and 10%, is $27,425 and $32,567, respectively, and is reflected as gift annuities payable in the accompanying statements of financial position. 9. Restricted Net Assets Temporarily Restricted Net Assets Temporarily restricted net assets consist of the following at August 31: Advanced academic programs $ 1,373,241 $ 1,121,350 Educational programs 749,020 1,039,320 Total temporarily restricted $ 2,122,261 $ 2,160,670 12

15 9. Restricted Net Assets (continued) Permanently Restricted Net Assets Permanently restricted net assets at, consist of funds contributed to the Ronald J. Berkheimer and Estelle C. Berkheimer Endowment Fund. Earnings from this fund in excess of required increases to the corpus can be used to support the study of market economics. 10. Endowment The Institute's endowment (permanently restricted net assets) has been funded by donorrestricted contributions to be held in perpetuity, the earnings of which can be used to fund the Institute's programs. Under accounting principles generally accepted in the United States of America, 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 Institute has interpreted the Virginia s Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds, absent explicit donor stipulations to the contrary. As a result of this interpretation, the Institute 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 the Institute in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Institute considers the following factors in making a determination to appropriate or accumulate donor-restricted funds: (1) duration and preservation of the fund; (2) purposes of the Institute and the donor-restricted endowment fund; (3) general economic conditions; (4) possible effect of inflation and deflation; (5) expected total return from income and the appreciation or depreciation of investments; (6) other resources of the Institute; and (7) investment policies of the Institute. 13

16 10. Endowment (continued) Endowment net asset composition by type of fund and changes in endowment net assets were as follows for the year ended August 31, 2009: Unrestricted Temporarily Restricted Permanently Restricted Total Donor restricted endowment funds $ - $ - $ 117,494 $ 117,494 Total endowment funds $ - $ - $ 117,494 $ 117,494 Endowment net assets, beginning $ - $ - $ 117,494 $ 117,494 Investment return: Net depreciation (151) - - (151) Total investment return (151) - - (151) Contributions Endowment net assets, ending $ (151) $ - $ 117,494 $ 117,343 Return Objectives, Risk Parameters and Strategies The Institute follows a conservative investment policy for endowment assets that attempts to preserve fully the original corpus and optimize returns. Should significant, new donations be made to the endowment assets, the Institute's investment policy would permit a strategy of long term growth of the endowment assets. Under such a policy, the endowment assets would be invested in a manner that is intended to produce favorable results while taking a prudent approach to risk. Funds with Deficiencies From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or UPMIFA requires the organization to retain as a fund of perpetual duration. In accordance with accounting principles generally accepted in the United States of America, deficiencies of this nature that are reported by the Institute in unrestricted net assets were $151 at August 31,

17 11. Commitments and Contingencies On June 1, 1999, the Institute entered into a lease obligation for its current space in Arlington, Virginia. The lease commenced on August 1, 1999 and, as amended on January 23, 2008, will expire on December 31, The lease may be terminated by the Institute at any time by giving at least ninety days written notice to the landlord. Rent expense for the years ended was $265,348 and $224,827, respectively, and is included in occupancy expense in the accompanying statements of functional expenses. In addition, the Institute and Mercatus Center, Inc. entered into a non-cancelable operating lease for additional office space that commenced on June 18, Each organization is jointly and severably liable under the lease. Occupancy expense is allocated each month to each organization based upon the number of employees occupying the space. Unoccupied space is split evenly between the two organizations. The lease calls for a fixed base rent with annual rental increases of 3% of the base rent. Rent expense is recognized on a straight-line basis over the term of the lease and was approximately $330,464 and $67,286 for the years ended, respectively. The deferred rent from the operating lease was $22,496 and $0 for the years ended, respectively. Future minimum lease payments are as follows for the years ending August 31: 2010 $ 690, , , , ,415 Total future minimum payments $ 3,144, Conditional Grant During the year ended August 31, 2008, the Institute was awarded a five year conditional grant for $925,000 from a donor. As of August 31, 2009, the Institute had received $185,000 from the grant and a further commitment for $185,000, which is included in contributions revenue in the accompanying statements of activities. The remaining $555,000 has not been recorded in the accompanying financial statements as future payments are conditional upon the grantor s approval on an annual basis to continue the funding. 15

18 13. Functional Expenses The costs of providing the various programs and other activities of the Institute have been allocated among the programs and supporting services benefited based on direct costs and an allocation portion of shared costs. The Institute s major programs and supporting services and the expenses incurred for each for the years ended are as follows: Communicators Program The communicators program department assists young people interested in careers in policy, journalism, and creative media. The department accomplishes this through scholarships, internships, strategic grants, educational seminars, mentoring and networking. Total expenses incurred under this program for the years ended August 31, 2009 and 2008 were $1,123,110 and $1,274,078, respectively. Advanced Academic Programs The advanced academic programs department works to develop talented young people who are interested in careers in academia. It accomplishes this through mentoring, career development seminars, scholarships, fellowships, focused research workshops, and strategic grants. Total expenses incurred under this program for the years ended August 31, 2009 and 2008 were $2,518,513 and $1,915,010, respectively. Student Marketing The student marketing department markets the Institute s programs to students and introduces new audiences to the ideas of liberty through printed materials, s, websites, direct mail, networking, and paid advertisements. Total expenses incurred under this program for the years ended were $547,769 and $478,769, respectively. Educational Programs The educational programs department works to interest and educate a wide range of young people in the ideas of liberty and to identify and evaluate students who have the potential to make contributions to a freer society. The department accomplishes this through educational seminars, on-campus programs, and on-line efforts. Total expenses incurred under this program for the years ended were $1,559,113 and $1,929,755, respectively. 16

19 13. Functional Expenses (continued) Public Affairs The public affairs program seeks to inform alumni, faculty, and supporters about the efforts of the Institute and build communication that develops a network of individuals interested in liberty. Total expenses incurred under this program for the years ended were $411,473 and $368,470, respectively. Management and General Management and general encompass the functions necessary to operate the business, including financial management, personnel activities, office space, upkeep, and equipment maintenance. Total expenses incurred under this program for the years ended August 31, 2009 and 2008 were $514,500 and $389,122, respectively. Fundraising Fundraising includes efforts to raise additional sources of revenue to cover both program and general and administrative costs and build support for the Institute s programs. Total expenses incurred under this program for the years ended were $495,466 and $544,509, respectively. 14. Related Party The Institute and Mercatus Center, Inc. (the Center) share several certain employees, and other expenses between the two organizations. Salaries, benefits and other expense reimbursements paid by the Institute on behalf of the Center for the years ended August 31, 2009 and 2008 totaled $748,166 and $669,332, respectively. Salaries, benefits and other expense reimbursements paid by the Center on behalf of the Institute totaled $686,045 and $333,644, respectively, for the years ended. Also, the Center received $18,261 of donations on behalf of the Institute during the year ended August 31, As of, the net amount payable by the Center to the Institute of $80,382 and $365,708, respectively, is included in accounts receivable in the accompanying statements of financial position. These amounts were paid subsequent to year end. 17

20 15. Income Taxes Under Section 501(c)(3) of the Internal Revenue Code, the Institute is exempt from the payment of taxes on income other than net unrelated business income. No tax expense is recorded in the accompanying financial statements as there were no unrelated business activities. In December 2008, Financial Accounting Standards Board issued FASB Staff Position (FSP) FIN 48-3, Effective Date of FASB "Interpretation No. 48 for Certain Nonpublic Enterprises". FSP FIN 48-3 permits an entity within its scope to defer the effective date of ASC 740 "Income Taxes," to its annual financial statements for fiscal years beginning after December 15, The Institute has elected to defer the application of ASC 740 for the year ended August 31, The Institute will continue to evaluate its uncertain tax positions using the provisions of ASC 450, "Contingencies" until ASC 740 is adopted. 18

21 SUPPLEMENTAL INFORMATION

22 Schedule of Functional Expenses For the Year Ended August 31, 2009 Total Program Services Management and General Fundraising Total Salaries, taxes and employee benefits $ 2,178,791 $ 337,913 $ 233,178 $ 2,749,882 Conference and seminars 1,735,481 4,933 1,710 1,742,124 Fellowships and grants 699, ,498 Travel and entertainment 275,936 1,985 1, ,741 Professional fees 324,682 40,321 24, ,219 Occupancy 432,353 79,644 56, ,886 Printing, typesetting, and copying 96, , ,682 Postage and shipping 80,310 1,662 67, ,715 Depreciation and amortization 151,002 27,816 19, ,687 Supplies 29,957 4,518 2,639 37,114 Books and subscriptions 28, ,792 Promotion and advertising 17, ,821 Miscellaneous 15,680 4,044 2,366 22,090 Equipment rental and maintenance 28,783 2,557 1,827 33,167 Telephone 24,452 5,770 2,803 33,025 Employee recruiting and relocation 1, ,245 Software 16, ,210 Insurance 10,270 1,892 1,351 13,513 List rental 8,950-5,990 14,940 Property tax 3, ,593 Total Expenses $ 6,159,978 $ 514,500 $ 495,466 $ 7,169,944 19

23 Schedule of Functional Expenses For the Year Ended August 31, 2008 Total Program Management Services and General Fundraising Total Salaries, taxes and employee benefits $ 1,999,250 $ 273,135 $ 220,944 $ 2,493,329 Conference and seminars 2,042,981 4,891 15,579 2,063,451 Fellowships and grants 567, ,068 Travel and entertainment 340, , ,510 Professional fees 239,599 44,311 35, ,915 Occupancy 233,691 32,132 26, ,113 Printing, typesetting, and copying 151, , ,494 Postage and shipping 92,150 1, , ,629 Depreciation and amortization 95,771 13,169 10, ,714 Suppllies 77,638 3,438 1,721 82,797 Books and subscriptions 35, ,044 Promotion and advertising 26, ,653 Miscellaneous 11,710 9,304 5,397 26,411 Equipment rental and maintenance 20,833 2,865 2,343 26,041 Telephone 10,591 2,525 1,494 14,610 Employee recruiting and relocation 10,432-1,020 11,452 Insurance 5, ,329 Property tax 3, ,153 Total Expenses $ 5,966,082 $ 389,122 $ 544,509 $ 6,899,713 20