TCBA WATSON RICE LLP CERTIFIED PUBLIC ACCOUNTANTS And Advisors

Transcription

1 (A Non-profit Organization) MIAMI, FLORIDA FINANCIAL STATEMENTS, INDEPENDENT AUDITORS REPORT THEREON, AND INDEPENDENT AUDITORS REPORTS ON COMPLIANCE, AND INTERNAL CONTROL BASED ON AN AUDIT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND OMB CIRCULAR A-133 LSC GRANT RECIPIENT NO FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 TCBA WATSON RICE LLP CERTIFIED PUBLIC ACCOUNTANTS And Advisors

2 Page # Independent Auditors' Report 1 BASIC FINANCIAL STATEMENTS: TABLE OF CONTENTS Statements of Financial Position 2 Statements of Activities 3 Statements of Functional Expenses 4 Statements of Cash Flows 6 Notes to Financial Statements 7 Summary of Funding Schedule - By Period of Recognition 18 Summary of Funding Schedule - Balances By Account 20 SUPPLEMENTAL SCHEDULES: Supplemental Schedule of Other Direct Costs 22 Supplemental Schedule of Support, Revenue, Expenses, and Changes in Net Assets for Legal Services Corporation Funds Supplemental Schedule of Support, Revenue, Expenses, and Changes in Net Assets for Private Attorney Involvement Program Supplemental Schedule of Support, Revenue, Expenses, and Changes in Net Assets 25 COMPLIANCE AND INTERNAL CONTROLS SECTION: Schedule of Expenditures of Federal Awards 26 Notes to Schedule of Expenditures of Federal Awards 27 Independent Auditors' Report on Internal Control over Financial Reporting, Compliance, and Other Matters that could have a direct and material effect on an audit of financial statements performed in accordance with Governmental Auditing Standards Independent Auditors' Report on Compliance with requirements applicable to each Major Program and Internal Control over Compliance in accordance with OMB Circular A Schedule of Findings and Questioned Cost 32

3 INDEPENDENT AUDITORS REPORT To The Board of Directors of Legal Services of Greater Miami, Inc. Miami, Florida We have audited the accompanying statements of financial position of Legal Services of Greater Miami, Inc. ( LSGMI ) as of December 31, 2011 and 2010, and the related statements of activities and cash flows for the years then ended. The financial statements are the responsibility of LSGMI s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 audits 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 LSGMI as of December 31, 2011 and 2010, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated April, 2012 on our consideration of LSGMI s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of the audit. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying Schedule of expenditures of Federal Awards on page 26 is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards 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 other 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 Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the financial statements as a whole. The accompanying Supplementary Schedules on pages 22 to 25 are presented for additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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. Miami, Florida April, 2012

4 (A Non-Profit Organization) STATEMENTS OF FINANCIAL POSITION As of December 31, 2011 and 2010 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,751,032 $ 1,285,240 Cash - client trust funds 448, ,157 Short-term investments 1,900,000 1,961,684 Accounts receivable - grants, contributors and others 249, ,328 Prepaid Expenses 71,208 74,425 Unconditional promises to give - current portion, net 145,211 74,486 Total Current Assets 4,565,576 4,012,320 PROPERTY Land 74,536 74,536 Building, net 792, ,097 Furniture, fixtures and equipment, net 72, ,429 Building improvements, net 745, ,276 Law library, net 10,131 24,086 Total Property, net 1,695,760 1,831,424 OTHER ASSETS Deposits 16,794 15,319 Unconditional promises to give - noncurrent portion, net 61,147 34,115 Intangible assets, net 4,500 6,000 Investments long-term other 205, ,989 Total Other Assets 287, ,422 TOTAL ASSETS $ 6,549,194 $ 6,082,166 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $ 79,124 $ 101,385 Accrued expenses 725, ,455 Client trust deposits 448, ,157 Deferred income 86, ,654 Total Current Liabilities 1,339,518 1,545,652 LONG-TERM LIABILITIES Deferred Compensation Plan 205, ,989 Total Liabilities 1,544,935 1,728,640 NET ASSETS Temporarily Restricted: Legal Services Corporation - grant [Note 12A] 781, ,541 Legal Services Corporation - property 67, ,604 FBF (IOTA) - grant 302, ,168 FBF (IOTA) - property 152, ,160 FBF - salary supplement - 110,000 FBF - computer equipment 9,581 17,732 Capital Campaign - other 2,035,472 1,448,070 Capital Campaign - property 1,471,123 1,552,927 Other 47,401 67,370 Unrestricted 137, ,954 Total Net Assets 5,004,259 4,353,526 TOTAL LIABILITIES AND NET ASSETS $ 6,549,194 $ 6,082,166 The accompanying notes are an integral part of financial statements. 2

5 (A Non-Profit Organization) STATEMENTS OF ACTIVITIES For the Years Ended December 31, 2011 and 2010 UNRESTRICTED Support and Revenues: Rental income $ 620,808 $ 522,362 Donated goods and services 5,081 20,628 Interest income 22,304 25,817 Miscellaneous income 185,124 32,666 Net assets released from restrictions 6,835,717 6,925,275 TOTAL UNRESTRICTED SUPPORT AND REVENUE 7,669,033 7,526,747 EXPENSES Program Services: General Law 5,218,088 5,426,163 Senior Citizens 1,833,382 1,445,541 Total Program Expenses 7,051,470 6,871,705 Supporting Services: Management and general 407, ,113 Fundraising 203, ,195 Total Functional Expenses 7,662,655 7,522,014 CHANGE IN UNRESTRICTED NET ASSETS 6,378 4,733 TEMPORARILY RESTRICTED Grants and contracts 6,956,156 7,119,616 Capital Campaign contributions 516, ,167 Donations for Operations 7,700 29,686 Net Assets released from restrictions (6,835,717) (6,925,275) CHANGE IN TEMPORARILY RESTRICTED NET ASSETS 644, ,195 CHANGE IN NET ASSETS 650, ,928 NET ASSETS AT BEGINNING OF THE YEAR 4,353,526 3,711,597 NET ASSETS AT END OF THE YEAR $ 5,004,259 $ 4,353,526 The accompanying notes are an integral part of financial statements. 3

6 (A Non-Profit Organization) STATEMENTS OF FUNCTIONAL EXPENSES (Continued) For the Years Ended December 31, 2011 and Program Services Supporting Services Total General Senior Program Management Fund- Law Citizens Services & General Raising Total Personnel Expenses Lawyers $ 1,596,856 $ 561,057 $ 2,157,913 $ 143,125 $ - $ 2,301,037 Paralegals 301, , ,596 27, ,630 Support Staff 435, , ,070 39, ,140 Other 892, ,434 1,205,516 83,745 57,118 1,346,378 Employee Benefits 877, ,454 1,186,363 21,643 9,301 1,217,307 Total Personnel Expenses 4,104,378 1,442,079 5,546, ,617 66,419 5,927,493 Other Expenses Contract Services to Clients 61,215 21,508 82, ,723 Contract Services to Program 155,585 54, ,251 18,552 69, ,259 Donated goods and services 3,526 1,239 4, ,081 Equipment repairs and maint. 25,650 9,012 34,662 2,299-36,961 Law Library 45,924 16,135 62, ,059 Litigation costs 47,528 16,699 64, ,227 Office Supplies 39,665 13,936 53,602 3, ,409 Other direct costs 168,607 59, ,848 17,569 37, ,465 Photocopying 13,959 4,905 18,864 1,251-20,115 Postage 18,819 6,612 25,431 1,932 3,702 31,065 Provision for uncollectible pledges ,366 26,366 Space and occupancy 387, , ,607 34, ,336 Telephone 33,885 11,906 45,791 3,037-48,828 Travel 16,688 5,863 22,551 1, ,104 Total Other Expenses 1,018, ,859 1,376,380 84, ,863 1,597,997 Total Expenses before depreciation & amortization 5,122,899 1,799,938 6,922, , ,282 7,525,490 Depreciation & Amortization 95,188 33, ,633 8, ,165 Total Functional Expenses $ 5,218,088 $ 1,833,382 $ 7,051,470 $ 407,903 $ 203,282 $ 7,662,655 The accompanying notes are an integral part of financial statements. 4

7 (A Non-Profit Organization) STATEMENTS OF FUNCTIONAL EXPENSES (Concluded) For the Years Ended December 31, 2011 and Program Services Supporting Services Total General Senior Program Management Fund- Law Citizens Services & General Raising Total Personnel Expenses Lawyers $ 1,613,725 $ 428,965 $ 2,042,690 $ 165,624 $ - $ 2,208,314 Paralegals 291,472 77, ,952 29, ,867 Support Staff 441, , ,557 45, ,845 Other 879, ,762 1,113,150 94,722 55,089 1,262,961 Employee Benefits 899, ,988 1,138,036 24,808 8,892 1,171,736 Total Personnel Expenses 4,124,894 1,096,491 5,221, ,357 63,981 5,645,723 Other Expenses Contract Services to Clients 104,179 27, , ,872 Contract Services to Program 191,677 50, ,629 23,137 42, ,491 Donated goods and services 15,074 4,007 19,081 1,547-20,628 Equipment repairs and maint. 29,854 7,936 37,790 3,064-40,854 Law Library 42,540 11,308 53, ,848 Litigation costs 46,309 12,310 58, ,619 Office Supplies 44,601 11,856 56,457 4,786 2,565 63,807 Other direct costs 186,603 49, ,207 22,639 43, ,855 Photocopying 10,122 2,691 12,813 1,039-13,852 Postage 20,893 5,554 26,447 2,710 6,973 36,129 Provision for uncollectible pledges ,530 8,530 Space and occupancy 463, , ,152 47, ,786 Telephone 35,642 9,474 45,117 3,658-48,775 Travel 15,105 4,015 19,120 1, ,008 Total Other Expenses 1,205, ,491 1,526, , ,215 1,742,054 Total Expenses before depreciation & amortization 5,330,553 1,416,982 6,747, , ,195 7,387,776 Depreciation & Amortization 95,611 28, ,170 10, ,237 Total Functional Expenses $ 5,426,163 $ 1,445,541 $ 6,871,705 $ 482,113 $ 168,195 $ 7,522,014 The accompanying notes are an integral part of financial statements. 5

8 (A Non-Profit Organization) STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2011 and 2010 CASH FLOWS FROM OPERATING ACTIVITIES Increase in net assets $ 650,733 $ 641,928 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation & Amortization 137, ,237 Provision for uncollectible pledges 26,366 8,530 (Increase) in accounts receivable (154,678) (109,325) Capital Campaign (516,215) (413,167) Decrease in prepaid expenses 3,217 1,412 (Increase) in deposits (1,476) (7,270) Increase (decrease) in accounts payable (22,261) 17,344 Increase in accrued expenses 41,522 83,650 Increase in clients trust deposits 51,085 14,001 Increase (decrease) in deferred income (276,479) 64,415 Net cash provided (used) by operating activities (61,023) 435,754 CASH FLOWS FROM INVESTING ACTIVITIES (Purchase) sale of short-term investments 61,684 (611,235) (Purchase) of property and intangible assets - (84,935) Net cash provided (used) by investing activities 61,684 (696,170) CASH FLOWS FROM FINANCING ACTIVITIES Capital Campaign 516, ,167 Net cash provided by financing activities 516, ,167 Net increase (decrease) in cash and cash equivalents 516, ,751 Cash and cash equivalents at beginning of year 1,682,397 1,529,646 Cash and cash equivalents at end of year $ 2,199,274 $ 1,682,397 Supplemental Disclosures: Income taxes paid $ NONE $ NONE Interest paid $ - $ - Non-Cash Operating Activities: Value of donated goods and services [Note 1E] $ 5,081 $ 20,628 The accompanying notes are an integral part of financial statements. 6

9 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity Legal Services of Greater Miami, Inc. ("LSGMI") is a private non-profit corporation, exempt from income tax under Section 501(c)(3) of the United States Internal Revenue Code (IRC). LSGMI provides free civil legal assistance to financially eligible individuals who reside in Miami-Dade County and Monroe County, Florida. The principal services and activities of the organization are the delivery of the full range of civil legal services including counsel and advice, case investigation, negotiation, drafting of legal documents, client and provider education about legal rights and responsibilities, and representation before federal and state administrative, judicial and appellate tribunals. Legal services are provided in the specialty areas of housing, employment and economic security, special education and community economic development. Services are provided to low income individuals including the elderly, disabled, children, homeless, victims of domestic violence and the working poor. B. Basis of Presentation The accompanying financial statements were prepared in accordance with the accounting standards established by the Financial Accounting Standards Board ( FASB ), which is the source of generally accepted accounting principles ( GAAP ) for non-profit entities in the United States of America. FASB Accounting Standards Codification ( ASC ) 958, Not-for-Profit Entities, requires non-profit organizations to report information regarding their financial position and activities according to three classes of net assets as follows: Unrestricted Net Assets - represents resources which have met all applicable restrictions and/or resources generated by other sources. Temporarily Restricted Net Assets - represents resources recognized as restricted support until such a time when all associated restrictions have been met. Permanently Restricted Net Assets - represents resources that contain stipulations that permanently restrict the use of such funds but allows earnings from the funds to be used in a certain manner. LSGMI did not have any permanently restricted net assets in 2011 or

10 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 C. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. D. Cash and Cash Equivalents Cash and cash equivalents include highly liquid short-term investments with original maturities of three (3) months or less. Interest earned on cash and cash equivalents is considered an increase in unrestricted net assets unless otherwise restricted by the donor. LSGMI segregates client trust funds from all other sources by placing them in separate bank accounts that are titled as Interest on Lawyers Trust Accounts. These funds are recorded as assets and liabilities and are presented separately on the statement of financial position. E. Short-Term Investments Short-term investments consist of highly liquid short-term investments with maturities over three (3) and up to nine (9) months. Interest earned on short-term investments is considered an increase in unrestricted net assets unless otherwise restricted by the donor. The carrying amounts of short-term investments reported in the statement of financial position approximate fair values because of the short term maturities of those instruments. F. Contract and Grant Support 1. General Grant revenues are recognized on the accrual basis and reported at gross amounts. LSGMI recognizes receivables from grantors, to the extent services have been performed and costs incurred but not reimbursed. Conversely, liabilities (deferred revenues) are recorded when contract advances exceed eligible costs incurred. 2. Legal Services Corporation ( LSC ) - Basic Field Grant LSGMI recognizes LSC Basic Field grant funds as support, on a straight-line basis, over the grant period. Funds remaining unused at the end of the accounting period are recorded as temporarily restricted net assets. The LSC net assets are subject to provisions of LSC s regulations. In accordance with its grant agreement with LSC, LSGMI may use unspent funds in future periods, as long as expenses 8

11 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 incurred are in compliance with specified terms of the LSC grant. LSC may, at its discretion, request reimbursement for expenses, or return of funds, or both, as a result of non-compliance by LSGMI with the LSC grant requirements. In addition, if LSGMI terminates LSC grant activities, all unused funds are to be returned to LSC. 3. Florida Bar Foundation ( FBF ) General Support Grant - a/k/a Interest On Lawyer s Trust Account ( IOTA ) LSGMI recognizes FBF General Support grant funds as support, on a straight-line basis, over the grant period. Funds remaining unused at the end of the accounting period are recorded as temporarily restricted net assets. In accordance with its grant agreement with the FBF, LSGMI may use unspent funds in future periods, as long as expenses incurred are in compliance with specified terms of the grant. G. Contributions LSGMI accounts for contributions in accordance with ASC , Not-for- Profit Entities-Revenue Recognition-Contributions Received, which requires recording contributions received as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Contributions with donor restrictions are reported as temporarily restricted support and then reclassified to unrestricted net assets upon the expiration of either time or use restrictions. In 2011 and 2010, LSGMI did not receive any permanently restricted contributions. H. Donated Items and In-Kind Contributions Donated items and in-kind contributions represent donated goods and services from individuals and other organizations as part of LSGMI s program services. Donated services are recognized as contributions in accordance with ASC , Not-for-Profit Entities-Revenue Recognition-Contributions Received, if the services (a) create or enhance nonfinancial assets or (b) require specialized skills, which otherwise would have been purchased by LSGMI. Donated items and in-kind contributions are recorded at their estimated fair value at the date of contribution. I. Concentration of Revenue For the years ended December 31, 2011 and 2010, LSGMI received approximately fifty-six percent (56%) and fifty-seven percent (57%), respectively, of its grant funding from LSC. LSC is a non-profit corporation established by Congress to administer the federal government's legal assistance program throughout the United States of America. For the years ended December 31, 2011 and 2010, LSGMI received approximately thirteen percent (13%), from the 9

12 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 Florida Bar Foundation's IOTA program, and the remainder from various private and public sources including Miami-Dade and Monroe Counties. J. Property 1. General An estimated service life of five to ten years has been assigned to the furniture, fixtures, and equipment; five to thirty years to capital expenditures; and thirty years to building. Property, equipment, and capital expenditures in excess of $5,000 are capitalized. Depreciation of property, equipment, capital expenditures, and building is computed on a straight-line basis over the estimated service lives of the assets. Property is capitalized at cost and is presented at its net carrying value on statement of financial position. Maintenance and repair costs are expensed in the period incurred. When property is retired, or otherwise disposed of, identifiable cost is removed from the asset accounts and the related depreciation reserve, with the difference being charged to income or loss. Property and equipment acquired with LSC funds are considered owned by LSGMI while used in the program or in future authorized programs. However, LSC has a reversionary interest in the assets acquired with its funds, as well as the determination of use of the proceeds from the sale of those assets. No LSC funds were used for LSGMI s building acquisition. Additionally, no LSC funds have been used for the building s capital improvements. 2. Land Land is recorded and presented at cost and is not depreciated because the value is expected neither to diminish over time nor to be exhausted by activities. 3. Law Library Until December 31, 2009, LSGMI capitalized the cost of law books. Depreciation of the law library is computed on a straight-line basis over an estimated useful life between three and ten years. A reversionary interest as well as the determination of use of proceeds is retained by LSC in the event of a sale of the law library for books and reference materials acquired with LSC funds. Effective January 1, 2010, LSGMI no longer capitalizes book purchases due to low costs as compared to the LSGMI s general capitalization threshold of $5,000 and increased use of online legal libraries. 10

13 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and Intangible Assets In 2009, LSGMI developed and launched its new website Since the initial cost to develop the website exceeded capitalization threshold of $5,000 and future benefits are expected to last for more than one year, LSGMI capitalized the website as an intangible asset, at cost. LSC funds were used. Amortization of the website is computed on a straight-line basis over an estimated useful life of 5 years. Costs to maintain the website such as content and graphics update, creation of new links, usage analysis, and annual hosting fees are expensed in the period incurred. K. Allocation of Expenses Some common expenses are incurred which support work performed under more than one grant or contract. Such expenses are allocated among the various grants under a cost allocation plan. L. Income and Property Taxes LSGMI is exempt from federal income taxes under Section 501(c)(3) and is not a "private foundation" under Section 509(a) of the IRC, as amended by the IRC; it is also exempt from Florida income, tangible and intangible personal property taxes; accordingly, no provision for these taxes have been made in the financial statements. NOTE 2. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash, cash equivalents, and short-term investment balances (before inter-fund eliminations) at December 31, 2011 included $559,632 for LSC, $1,947,784 for the Capital Campaign, and $1,006,283 for other temporarily restricted programs. At December 31, 2010 the balances were $494,378 for LSC, $1,461,199 for the Capital Campaign and $1,160,392 for other. Unrestricted cash and short-term investment balances at December 31, 2011 and 2010 totaled $137,333 and $130,954, respectively. NOTE 3. UNCONDITIONAL PROMISES TO GIVE (PLEDGES) Unconditional promises to give that are expected to be collected within one year are recorded at net realizable 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 those amounts are computed using risk-free interest rates applicable to the years in which the promises are received. Discount rates range from 4.5 percent to 5.0 percent. Amortization of the discounts is included in contributions revenue. LSGMI does not recognize subsequent interest on promises to give; however, the effect is immaterial. 11

14 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 LSGMI annually assesses collectability of outstanding pledges. Pledges deemed uncollectible are written off against the allowance. At December 31, 2011, unconditional promises to give consisted of: Capital Campaign $ 241,355 Less: Unamortized discount (10,861) Less: Allowance for uncollectibles (24,135) Net unconditional promises to give $ 206,358 Amounts due in: Less than one year $ 169,838 From one to five years 71,517 Total $ 241,355 Unconditional promises to give were primarily a result of LSGMI's Together, We Must Campaign launched in Conditional promises to give are not included as support until the conditions are substantially met. There were no conditional promises to give at December 31, 2011 or NOTE 4. COMMITMENTS AND CONTINGENCIES A. Commitments - Operating Leases LSGMI leases office space for its regional offices under operating leases. For years 2011 and 2010, the lease expenses were $86,208 and $105,577, respectively. Effective April 5, 2010, upon agreement with the landlord, LSGMI terminated its Key West office lease, which was due to expire on May 31, Lease for South Dade office expires August 31, 2016 and has two options to renew: for 5 years and for 3 additional years. As of December 31, 2011, minimum future lease payments for office space were: Year Annual Expense 2012 $ 78, , , , ,440 Total $ 398,850 12

15 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 Contingencies - Grants The costs and unexpended funds reflected in the accompanying financial statements relating to grant funded programs are subject to audit by the respective funding agencies (funding sources). The possible disallowance by the related funding agencies of any item charged to the program or request for the return of any unexpended funds cannot be determined at this time. No provision for any liability that may result has been made in the financial statements. NOTE 5. REVENUES A. Grants and Contracts The Summary of Funding Schedules located after the notes to the financial statements, present the major grant and contract activities for the year ended December 31, B. Rental Income LSGMI owns and occupies its main building. LSGMI also leases space in the building to various other nonprofit organizations under agreements expiring in various years through At December 31, 2011, future minimum rental income receivable amounts under noncancellable operating leases were as follows: Year C. Donated Goods and Services Annual Income 2012 $ 547, , , , ,720 Total $ 1,059,543 In 2011, LSGMI received the following donated services: Description Amount Language Lines for Client Translating Services $ 3,981 Training for LSC Technology Initiative grant 1,100 Total donated goods and services $ 5,081 13

16 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 NOTE 6. EMPLOYEE BENEFIT PLANS LSGMI 401(k) Plan & Trust LSGMI s 401(k) plan became effective in Full-time employees become eligible on the first of the month, following a year of employment. The plan allows eligible employees to defer a portion of their compensation up to the allowable limit per IRC. Such deferrals accumulate on a tax-deferred basis until the employee withdraws the funds. As of December 31, 2011, fifty-one (51) employees participated in the salary deferrals. LSGMI may make matching contributions on behalf of the plan participants in an amount determined by LSGMI in its sole discretion for each plan year. For 2011 and 2010, the rate of LSGMI s match was 50% of employees contribution not to exceed 2% of employees qualified compensation. Total expenses recorded for LSGMI s match for 2011 and 2010 were $65,308 and $57,642, respectively. Fifty-six (56) employees were eligible for 2011 match. The plan also provides a non-elective component, where LSGMI may make a discretionary contribution, which is allocated based on the proportion of each eligible employee s points to the total points of all eligible employees. Eligible employees receive 100 points for every full year of service and one (1) point for every $25 of compensation. Total expenses recorded for LSGMI s non-elective contributions for 2011 were $74,692. Sixty-two (62) employees were eligible for this contribution in There were no such contributions for In 2010, the FBF provided a grant to supplement LSGMI s contributions to the retirement plan. The FBF provided a base contribution that equals 2% of qualifying compensation for all eligible LSGMI employees, and LSGMI matched 1% of the qualifying compensation. Employees were not required to make personal contributions (deferrals) to the plan in order to receive the Foundation s 2% and the LSGMI s 1% contribution. No such grant was received in 2011, and, therefore, no base contributions were made for Total base contributions for 2010 were $113,384 ($75,589 paid by the FBF and $37,795 by LSGMI). Sixty-six (66) employees were eligible for this contribution in LSGMI 403(b) Tax Deferred Annuity Plan LSGMI offers a tax deferred annuity plan to its employees. Under the plan, employees may have a portion of their salaries withheld and used to purchase an annuity for retirement benefits. Salaries for income tax purposes do not include amounts withheld for contributions to these plans. No past service costs are associated with this plan. Employees are fully vested immediately for their contributions. LSGMI does not make employer contributions to the tax sheltered annuity plan. Five (5) employees participated in the plan as of December 31,

17 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 LSGMI 457(b) Deferred Compensation Plan LSGMI offers a 457(b) deferred compensation plan to managers and highly compensated employees. The plan allows participants to defer a portion of their compensation up to the allowable limit per the IRC. Participants are fully vested immediately for their contributions. No past service costs are associated with this plan. LSGMI does not make employer contributions to this plan. As of December 31, 2011, four (4) participants had balances in the plan. Balances of the plan are reflected at fair market value, as reported by the plan provider, in the statement of financial position as long-term investments and a related deferred compensation plan liability. Flexible Spending Plan LSGMI provides an IRC Section 125 Cafeteria Plan for substantially all employees. Under this plan eligible employees may contribute their pre-tax dollars to either a dependent care reimbursement plan or to a health expense reimbursement plan. Eight (8) employees participated in the plan as of December 31, NOTE 7. COMPENSATED ABSENCES Accumulated vacation leave liability at December 31, 2011 and 2010 was $407,594 and $379,820, respectively, and is included in accrued expenses in the statements of financial position. NOTE 8. DEPRECIATION AND AMORTIZATION Total depreciation expense for property was $135,665 and $132,737 in 2011 and 2010, respectively. Total accumulated depreciation at December 31, 2011 and 2010 was $2,957,276 and $2,876,631, respectively. Total amortization expense for intangible assets was $1,500 in 2011 and Total accumulated amortization at December 31, 2011 and 2010 was $3,000 and $1,500, respectively. NOTE 9. PUBLIC SUPPORT WHICH REQUIRES MATCH LSGMI received a portion of its support from the State of Florida Department of Children and Family Services, passed through the Alliance for Aging, Inc. Income is earned on a unit cost basis for services delivered under the contract. The contract requires a specific local match. 15

18 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 The matching computation is as follows: Total Expenses $ 7,525,490 Less: non-matching revenue (4,504,138) Expenses after non-matching revenue 3,021,352 Less: non-reimbursable expenses (26,366) Reimbursable expense 2,994,986 Amount received or receivable requiring match (90%) $ 225,825 Match required (10%) 25,092 (250,916) Excess expenditures $ 2,744,069 Excess expenditures demonstrate that the amounts received from the State of Florida (plus the matching amounts) did not exceed the reimbursable expenses. NOTE 10. NET ASSETS A. LSC On December 31, 2010, LSGMI s LSC grant net assets were $7,260 in excess of the allowed LSC net assets carryover. Management requested, and was granted, a waiver of the net assets carryover allowance from LSC. The $7,260 was used in 2011 for attorney salaries. On December 31, 2011, LSGMI s LSC grant net assets were $328,267 in excess of the allowed LSC net assets carryover. Management will request a waiver of the net assets carryover allowance from LSC. B. Capital Campaign - Other Of the $2,035,472 in the Capital Campaign's ending net assets (non-property portion), LSGMI s Board internally designated several reserves as follows: $632,171 as an emergency operating reserve, representing approximately one month of operating expenses, $391,540 as salary reserve, $150,000 as a reserve for building disaster, and $205,037 as a reserve for building repairs. NOTE 11. RECLASSIFICATIONS Certain amounts in the 2010 financial statements have been reclassified to conform to the 2011 presentation. These reclassifications had no impact on previously reported net assets or changes in net assets. 16

19 (A Non-profit Organization) NOTES TO FINANCIAL STATEMENTS For the Years Ended December 31, 2011 and 2010 NOTE 12. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date of Independent Auditor s report, which is the date the financial statements were available to be issued. 17

20 3,993,564 3,963,532-30,032 Florida Bar Foundation General Support (IOTA) 1/1/ /31/ , , General Support Restricted 1/1/ /31/2009 9, ,472 - General Support Restricted 1/1/ /31/2010 9,013 9, Affordable Housing 5/1/2010 4/30/ ,060 65,463 90,597 - Affordable Housing 5/1/2011 4/30/ , ,940-36,520 Children's Legal Services 4/1/2010 3/31/ ,300 14,580 43,720 - Children's Legal Services 4/1/2011 3/31/ ,640 34,940-11,700 Summer Fellow 5/23/2011 8/5/2011 7,700 7, Region 7 1/1/2011 6/30/ ,500 22, Salary Supplement 1/1/ /31/ , , Salary Suppl. Benefits 1/1/ /31/ ,508 34, ,745,857 1,554, ,789 48,220 State of Florida Department of Elder Affairs-Title IIIB Alliance for Aging 10/1/ /31/ ,419-28,419 - Department of Elder Affairs-Title IIIB Alliance for Aging 1/1/ /31/ , , Department of Elder Affairs Community Legal Ed 4/1/2011 6/30/2011 2,000 2, FACLA-Florida Bar Foundation 7/1/2010 6/30/ ,201 28,056 30,145 - FACLA Foreclosure-Fl. Bar Foundation 7/1/2010 6/30/ ,198 69,855 61,343 - Attorney General-Fl. Bar Foundation 10/1/2010 9/30/ , ,340 48,360 - Attorney General-Fl. Bar Foundation 10/1/2011 9/30/ ,706 23,175-69, , , ,267 69,531 Balance forward 6,472,470 6,013, , ,783 LEGAL SERVICES OF GREATER MIAMI, INC. SUMMARY OF FUNDING SCHEDULE-BY PERIODS OF RECOGNITION (SCHEDULE I) FOR THE YEAR ENDED DECEMBER 31, 2011 $ CONTRACT AVAILABLE PERIOD AWARD 2011 PREVIOUSLY IN THE SOURCE FROM TO AMOUNT SUPPORT RECOGNIZED FUTURE Legal Services Corporation Basic Field 1/1/ /31/2011 $ 3,918,564 $ 3,918,564 $ - - Technology Initiative 1/1/2011 6/30/ ,000 44,968-30,032 18

21 CONTRACT AVAILABLE PERIOD AWARD 2011 PREVIOUSLY IN THE SOURCE FROM TO AMOUNT SUPPORT RECOGNIZED FUTURE Balance brought forward $ 6,472,470 $ 6,013,630 $ 311,056 $ 147,783 Miami-Dade County Ryan White HIV/AIDS Part A 3/1/2010 2/28/ ,903 27, ,655 - Ryan White HIV/AIDS Part A 3/1/2011 2/29/ , ,485-34,515 Homeless Trust 8/1/2010 7/31/ ,992 61,457 45,534 - Homeless Trust 8/1/2011 7/31/ ,992 51,531-55,461 Self-Sufficiency 10/1/2010 9/30/ ,600 51,687 16,913 - Self-Sufficiency 10/1/2011 9/30/ ,300 8,676-25,624 Basic Legal Needs 10/1/2010 9/30/ ,675 28,742 9,933 - Basic Legal Needs 10/1/2011 9/30/ ,672 9,731-28, , , , ,542 Monroe County - Funding 1/1/ /31/ ,530-25,530 - Monroe County - Funding 1/1/ /31/ ,142 30, Low-Income Taxpayer Clinic (IRS) 1/1/ /31/ ,558-84,558 - Low-Income Taxpayer Clinic (IRS) 1/1/ /31/ ,600 84, Florida Housing Finance Corporation 10/30/ /31/ Homeless Prev. Rapid Re-Housing-State 10/1/ /31/ ,000-23,000 - Homeless Prev. Rapid Re-Housing-M-D County 9/14/2009 9/13/ ,000-85,000 - Homeless Prev. Rapid Re-Housing-M-D County 1/1/ /31/ ,000 85, Homeless Prev. Rapid Re-Housing-Cities 5/1/2010 4/30/ ,704 14,548 33,156 - Homeless Prev. Rapid Re-Housing-Cities 5/1/2011 7/31/ ,926 11, The Lodge 11/1/2010 7/31/ ,000 24,245 5,755 - Supportive Services for Veteran Families 10/1/2011 9/30/ ,112 25,567-75,545 Camillus House 1/1/ /31/ ,000-24,000 - Camillus House 1/1/ /31/ ,000 24, Equal Justice Works Fellow 9/1/2010 8/31/ ,313 26,813 12,500 - Institute for Foreclosure Legal Assistance 4/1/2010 3/31/ ,000 23,236 71,764 - The Miami Foundation-BRAIVE 7/1/2010 6/30/ ,000 41,870 38,130 - The Miami Foundation-BRAIVE - Training 1/1/2011 6/30/2011 7,500 7, The Miami Foundation-ConnectFamilias 11/1/ /31/ ,000 30, Single Stop, USA 1/1/2011 9/30/ ,500 37, Single Stop, USA 10/1/2011 3/31/ ,846 12,023-16,823 University of Miami Clinic 1/1/ /31/ ,000 70, TOTAL $ 8,265,834 $ 6,956,156 $ 924,984 $ 384,693 LEGAL SERVICES OF GREATER MIAMI, INC. SUMMARY OF FUNDING SCHEDULE-BY PERIODS OF RECOGNITION (SCHEDULE I) FOR THE YEAR ENDED DECEMBER 31,

22 - - 3,963,532 3,958,564 4,968 - Florida Bar Foundation General Support (IOTA) 1/1/ /31/ , , General Support Restricted 1/1/ /31/ General Support Restricted 1/1/ /31/2010-9,013 9, Affordable Housing 5/1/2010 4/30/ ,463 65, Affordable Housing 5/1/2011 4/30/ , ,460-36,520 Children's Legal Services 4/1/2010 3/31/ ,580 14, Children's Legal Services 4/1/2011 3/31/ ,940 46,640-11,700 Summer Fellow 5/23/2011 8/5/ ,700 7, Region 7 1/1/2011 6/30/ ,500 22, Salary Supplement 1/1/ /31/ , , Salary Suppl. Benefits 1/1/ /31/ ,508 34, ,597 1,554,848 1,513,471-48,220 State of Florida Department of Elder Affairs-Title IIIB Alliance for Aging 10/1/ /31/ , , Department of Elder Affairs-Title IIIB Alliance for Aging 1/1/ /31/ , ,775 48,050 - Department of Elder Affairs Community Legal Ed 4/1/2011 6/30/ ,000 2, FACLA-Florida Bar Foundation 7/1/2010 6/30/ ,056 28, FACLA Foreclosure-Fl. Bar Foundation 7/1/2010 6/30/ ,855 69, Attorney General-Fl. Bar Foundation 10/1/2010 9/30/ , , Attorney General-Fl. Bar Foundation 10/1/2011 9/30/ ,175 46,353-23,178 18, , , ,057 48,050 23,178 Balance forward 122, ,848 6,407,187 6,128, ,073 71,398 LEGAL SERVICES OF GREATER MIAMI, INC. SUMMARY OF FUNDING SCHEDULE-BALANCES BY ACCOUNT (SCHEDULE II) FOR THE YEAR ENDED DECEMBER 31, 2011 December 31, 2010 December 31, 2011 PERIOD ACCOUNTS DEFERRED ACCOUNTS DEFERRED SOURCE FROM TO RECEIVABLE INCOME SUPPORT RECEIPTS RECEIVABLE INCOME Legal Services Corporation $ Basic Field 1/1/ /31/2011 $ - $ - $ 3,918,564 $ 3,918,564 $ - - Technology Initiative 1/1/2011 6/30/ ,968 40,000 4,968-20

23 Balance brought forward $ 122,219 $ 333,848 $ 6,407,187 $ 6,128,479 $ 138,073 $ 71,398 Miami-Dade County Ryan White HIV/AIDS Part A 3/1/2010 2/28/ ,295-27,248 65, Ryan White HIV/AIDS Part A 3/1/2011 2/29/ , ,221 18,264 - Homeless Trust 8/1/2010 7/31/ ,149-61,457 99, Homeless Trust 8/1/2011 7/31/ ,531 8,863 42,668 - Self-Sufficiency 10/1/2010 9/30/ ,913-51,687 62,883 5,717 - Self-Sufficiency 10/1/2011 9/30/ ,676-8,676 - Basic Legal Needs 10/1/2010 9/30/2011 9,933-28,742 38, Basic Legal Needs 10/1/2011 9/30/ ,731-9, , , ,387 85,056 - Monroe County - Funding 1/1/ /31/2010 4, , Monroe County - Funding 1/1/ /31/ ,142 22,942 7,200 - Low-Income Taxpayer Clinic (IRS) 1/1/ /31/ , , Low-Income Taxpayer Clinic (IRS) 1/1/ /31/ ,600 55,344 29,256 - Florida Housing Finance Corporation 10/30/ /31/ Homeless Prev. Rapid Re-Housing-State 10/1/ /31/ , , Homeless Prev. Rapid Re-Housing-M-D County 9/14/2009 9/13/2010 6, , Homeless Prev. Rapid Re-Housing-M-D County 1/1/ /31/ ,000 45,019 39,981 - Homeless Prev. Rapid Re-Housing-Cities 5/1/2010 4/30/ ,473-14,548 28, Homeless Prev. Rapid Re-Housing-Cities 5/1/2011 7/31/ ,926 11, The Lodge 11/1/2010 7/31/2011 2,941-24,245 24,990 2,197 - Supportive Services for Veteran Families 10/1/2011 9/30/ ,567 24,818 7,354 6,605 Camillus House 1/1/ /31/2010 6, , Camillus House 1/1/ /31/ ,000 24, Equal Justice Works Fellow 9/1/2010 8/31/ ,813 26, Institute for Foreclosure Legal Assistance 4/1/2010 3/31/ ,236 23, The Miami Foundation-BRAIVE 7/1/2010 6/30/ ,870 42, The Miami Foundation-BRAIVE - Training 1/1/2011 6/30/ ,500 7, The Miami Foundation-ConnectFamilias 11/1/ /31/ ,000 30, Single Stop, USA 1/1/2011 9/30/ ,500 37, Single Stop, USA 10/1/2011 3/31/ ,023-12,023 - University of Miami Clinic 1/1/ /31/ ,000 70, TOTAL - Grants and Contracts 194, ,848 6,956,156 6,658, ,084 78,003 Rental Income and Other 24,426 28,806 1,357,232 1,347,225 13,798 8,172 Total $ 219,328 $ 362,654 $ 8,313,388 $ 8,005,952 $ 249,882 $ 86,175 LEGAL SERVICES OF GREATER MIAMI, INC. SUMMARY OF FUNDING SCHEDULE-BALANCES BY ACCOUNT (SCHEDULE II) FOR THE YEAR ENDED DECEMBER 31, 2011 December 31, 2010 December 31, 2011 PERIOD ACCOUNTS DEFERRED ACCOUNTS DEFERRED SOURCE FROM TO RECEIVABLE INCOME SUPPORT RECEIPTS RECEIVABLE INCOME 21

24 (A Non-Profit Organization) SUPPLEMENTAL SCHEDULES OF OTHER DIRECT COSTS For the Years Ended December 31, 2011 and Audit and taxes $ 28,500 $ 28,500 Computer services/online fees 52,968 51,589 Dues 9,000 9,000 Insurance 66,512 62,173 Meetings 37,991 47,414 Outside Printing 23,930 30,659 Training 28,520 57,605 Moving 21,209 - Other 13,835 14,917 Total $ 282,465 $ 301,855 22

25 (A Non-Profit Organization) SUPPLEMENTAL SCHEDULE OF SUPPORT, REVENUE, EXPENSES, AND CHANGES IN NET ASSETS FOR LEGAL SERVICES CORPORATION FUNDS For the Years Ended December 31, 2011 Basic Field - Private Technology Basic Field Attorney Basic Field Initiative Total Total Grant Involvement Sub-Total Grant Property Support and Revenue Grants and contracts $ 3,443,545 $ 475,019 $ 3,918,564 $ 44,968 $ - $ 3,963,532 $ 4,087,534 Interest income 4,995-4, ,995 8,085 Rental income 502, , , ,337 Miscellaneous 107, , ,694 8,853 Total Support and Revenue 4,059, ,019 4,534,107 44,968-4,579,075 4,532,809 Expenses Personnel Expenses Lawyers 402, , ,296 37, , ,933 Paralegals 232,989 51, , , ,457 Support Staff 402,329 43, , , ,038 Other 929,469 80,714 1,010, ,010,183 1,114,253 Employee benefits 723,756 73, ,706 7, , ,673 Total Personnel Expenses 2,691, ,955 3,043,492 44,968-3,088,460 3,143,355 Other Expenses Contract Services to Clients - 25,873 25, ,873 35,981 Contract Services to Program 143,375 38, , , ,795 Equipment repairs and maint. 27,896 1,396 29, ,291 39,546 Interest expense Law Library 35,917 2,343 38, ,260 38,311 Litigation costs 47,112 2,745 49, ,857 57,002 Office Supplies 42,446 2,153 44, ,599 53,476 Other direct costs 151,802 16, , , ,150 Photocopying 15, , ,424 13,852 Postage 21,127 4,036 25, ,163 35,718 Space and occupancy 508,009 25, , , ,521 Telephone 35,482 1,844 37, ,326 45,180 Travel 17,584 1,580 19, ,165 19,819 Total Other Expenses 1,046, ,064 1,169, ,169,478 1,412,350 Total Expenses before Depreciation & Amortization 3,737, ,019 4,212,970 44,968-4,257,938 4,555,705 Depreciation & Amortization ,247 34,247 31,111 Total Expenses 3,737, ,019 4,212,970 44,968 34,247 4,292,185 4,586,816 Excess (deficiency) of support over expenses 321, ,137 - (34,247) 286,890 (54,008) Other Changes in Net Assets Acquisition of Property Total Changes in Net Assets 321, ,137 - (34,247) 286,890 (54,008) Net Assets at Beginning of Year 460, , , , ,153 Net Assets at End of Year $ 781,678 $ - $ 781,678 $ - $ 67,357 $ 849,035 $ 562,145 23

26 (A Non-Profit Organization) SUPPLEMENTAL SCHEDULE OF SUPPORT, REVENUE, EXPENSES, AND CHANGES IN NET ASSETS FOR PRIVATE ATTORNEY PROGRAM For the Years Ended December 31, 2011 Legal Services Capital Total Total Corporation Campaign Other Support and Revenue Grants and contracts $ 475,019 $ - $ 75,245 $ 550,264 $ 632,672 Capital Campaign - 46,123-46,123 44,640 Total Support and Revenue 475,019 46,123 75, , ,312 Expenses Personnel Expenses Lawyers 102, , ,505 Paralegals 51, ,523 47,704 Support Staff 43, ,467 44,729 Other 80, ,714 80,994 Employee benefits 73,950-1,761 75,711 76,733 Total Personnel Expenses 351,955-1, , ,665 Other Expenses Contract Services to Clients 25,873-56,850 82, ,872 Contract Services to Program 38,442 35,803 7,410 81,656 75,292 Equipment repairs and maint. 1, ,396 1,722 Interest expense Law Library 2, ,343 2,269 Litigation costs 2, ,823 2,822 Office Supplies 2, ,153 4,691 Other direct costs 16,484 10,319 8,276 35,080 45,421 Photocopying Postage 4, ,741 6,226 Space and occupancy 25, ,408 42,011 Telephone 1, ,844 2,055 Travel 1, ,746 1,682 Total Other Expenses 123,064 46,123 73, , ,647 Total Expenses 475,019 46,123 75, , ,312 Total Changes in Net Assets $ - $ - $ - $ - $ - 24

27 (A Non-Profit Organization) SUPPLEMENTAL SCHEDULE OF SUPPORT, REVENUE, EXPENSES, AND CHANGES IN NET ASSETS For the Years Ended December 31, 2011 Legal LSC Florida Services Technology Bar Foundation Total Total Corporation Initiative (IOTA) Other Property Support and Revenue Grants and contracts $ 3,918,564 $ 44,968 $ 915,585 $ 2,077,039 $ - $ 6,956,156 $ 7,119,616 Donated Goods and Services - 1,100 3, ,081 20,628 Interest income 4,995-17,309-22,304 25,817 Rental income 502, , , ,362 Capital Campaign , , ,167 Donations for Operation - - 7,700-7,700 29,686 Miscellaneous 107,694-77, ,124 32,666 Total Support and Revenue 4,534,107 46, ,566 2,813,648-8,313,388 8,163,942 Expenses Personnel Expenses Lawyers 505,296 37, ,335 1,640,932-2,301,037 2,208,314 Paralegals 284,511 66,431 83, , ,867 Support Staff 445, ,691 79, , ,845 Other 1,010, , ,080-1,346,378 1,262,961 Employee benefits 797,706 7, , ,528-1,217,307 1,171,736 Total Personnel Expenses 3,043,492 44, ,152 2,129,881-5,927,493 5,645,723 Other Expenses Contract Services to Clients 25, ,850-82, ,872 Contract Services to Program 181,817-36,065 80, , ,491 Donated goods and services - 1,100 3, ,081 20,628 Equipment repairs and maint. 29,291-6, ,961 40,854 Law Library 38,260-22,436 1,363-62,059 53,848 Litigation costs 49,857-13,247 1,123-64,227 58,619 Office Supplies 44,599-10,426 2,384-57,409 63,807 Other direct costs 168,287-71,119 43, , ,855 Photocopying 16,424-3, ,115 13,852 Postage 25,163-5, ,065 36,129 Provisions - uncollect. pledges ,366-26,366 8,530 Space and occupancy 533,417-20,041 4, , ,786 Telephone 37,326-9,190 2,311-48,828 48,775 Travel 19,165-4, ,104 21,008 Total Other Expenses 1,169,478 1, , ,955-1,597,997 1,742,054 Total Expenses Before Depreciation & Amortization 4,212,970 46, ,617 2,349,836-7,525,490 7,387,776 Depreciation & Amortization , , ,237 Total Expenses 4,212,970 46, ,617 2,349, ,165 7,662,655 7,522,014 Excess (deficiency) of support over expenses 321,137-2, ,811 (137,165) 650, ,928 Other Changes in Net Assets Acquisition of Property Total Changes in Net Assets 321,137-2, ,811 (137,165) 650, ,928 Net Assets at Beginning of Year 460, ,168 1,756,394 1,837,423 4,353,526 3,711,597 Net Assets at End of Year $ 781,678 $ - $ 302,117 $ 2,220,206 $ 1,700,258 $ 5,004,259 $ 4,353,526 25