Consolidated Financial Statements and Supplemental Information. and Report Thereon

Transcription

1 Consolidated Financial Statements and Supplemental Information (With Summarized Financial Information for the Year Ended December 31, 2009) and Report Thereon

2 TABLE OF CONTENTS Page Independent Auditor s Report... 1 Consolidated Financial Statements Consolidated Statement of Financial Position... 2 Consolidated Statement of Activities... 3 Consolidated Statement of Cash Flows... 4 Notes to Consolidated Financial Statements Supplemental Information Consolidated Schedule of Functional Expenses... 16

3 INDEPENDENT AUDITOR S REPORT To the Board of Directors of Independent Sector CONSULTING ACCOUNTING TECHNOLOGY Certified Public Accountants We have audited the accompanying consolidated statement of financial position of Independent Sector and 1602 IS LLC (collectively referred to as Independent Sector) as of December 31, 2010, and the related consolidated statements of activities and cash flows for the year then ended. These consolidated financial statements are the responsibility of Independent Sector s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The prior year summarized comparative information has been derived from Independent Sector s 2009 consolidated financial statements and, in our report dated May 10, 2010, we expressed an unqualified opinion on those consolidated 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 consolidated financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Independent Sector s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Independent Sector as of December 31, 2010, 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 consolidated financial statements taken as a whole. The consolidated schedule of functional expenses on page 16 is presented for purposes of additional analysis and is not a required part of the basic consolidated financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic consolidated financial statements taken as a whole. RAFFA, P.C. Washington, DC March 29, 2011

4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 31, 2010 (With Summarized Financial Information as of December 31, 2009) ASSETS Cash and cash equivalents $ 2,258,360 $ 2,238,903 Investments (including restricted investments of $5,000,000 as of December 31, 2010) 7,121,432 15,311,902 Accounts and other receivables 231, ,312 Grants receivable, net 2,623,314 2,024,088 Deferred rent receivable 242, ,069 Deferred lease incentives 828,144 1,042,040 Property and equipment, net 32,709,450 33,645,862 Bond issuance costs, net 302,716 - Deferred compensation plan asset 126,784 91,250 Other assets 64,079 81,427 TOTAL ASSETS $ 46,508,429 $ 54,675,853 LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued expenses $ 473,694 $ 1,552,026 Deferred rent 52,353 - Deferred compensation plan liability 126,784 91,250 Notes payable 23,000,000 31,000,000 Deposits held in escrow 94,563 94,563 TOTAL LIABILITIES 23,747,394 32,737,839 Net Assets Unrestricted Undesignated 13,399,744 12,620,201 Board designated 5,000,000 5,000,000 Total Unrestricted 18,399,744 17,620,201 Temporarily restricted 4,361,291 4,317,813 TOTAL NET ASSETS 22,761,035 21,938,014 TOTAL LIABILITIES AND NET ASSETS $ 46,508,429 $ 54,675,853 The accompanying notes are an integral part of these consolidated financial statements

5 CONSOLIDATED STATEMENT OF ACTIVITIES (With Summarized Financial Information for the Year Ended December 31, 2009) Temporarily Unrestricted Restricted Total Total REVENUE AND SUPPORT Grants and contributions $ 1,755,024 $ 3,327,411 $ 5,082,435 $ 5,400,409 Membership contributions 2,984,440-2,984,440 2,997,021 Rental income 1,449,992-1,449,992 1,225,143 Conference fees 404, , ,038 Publication sales and other 127, ,871 12,493 Investment income 96,812-96,812 85,152 Net assets released from restrictions: Satisfaction of program restrictions 1,376,433 (1,376,433) - - Satisfaction of time restrictions 1,907,500 (1,907,500) - - TOTAL REVENUE AND SUPPORT 10,102,970 43,478 10,146,448 10,202,256 EXPENSES Program Services: Public policy 1,657,536-1,657,536 1,968,060 Annual conference 1,315,793-1,315,793 1,306,134 Nonprofit & philanthropic leadership & practice 1,198,119-1,198,119 1,127,202 Emerging issues & strategic initiatives 748, ,683 1,450,965 Communications and marketing 747, , ,655 Total Program Services 5,667,213-5,667,213 6,732,016 Fundraising Services 568, , ,723 Supporting Services: General and administrative 1,333,544-1,333,544 1,364,069 Membership development 266, , ,667 Total Supporting Services 1,600,250-1,600,250 1,695,736 Building Services: Building operations 485, , ,546 Tenant operations 956, ,145 1,031,445 Total Building Services 1,442,084-1,442,084 1,681,991 TOTAL EXPENSES 9,278,152-9,278,152 10,652,466 CHANGE IN NET ASSETS FROM OPERATIONS 824,818 43, ,296 (450,210) Unrealized gain (loss) on investments (45,275) - (45,275) 21,798 CHANGE IN NET ASSETS 779,543 43, ,021 (428,412) NET ASSETS, BEGINNING OF YEAR 17,620,201 4,317,813 21,938,014 22,366,426 NET ASSETS, END OF YEAR $ 18,399,744 $ 4,361,291 $ 22,761,035 $ 21,938,014 The accompanying notes are an integral part of these consolidated financial statements

6 CONSOLIDATED STATEMENT OF CASH FLOWS (With Summarized Financial Information for the Year Ended December 31, 2009) Increase (Decrease) in Cash and Cash Equivalents CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 823,021 $ (428,412) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 999, ,677 Net realized and unrealized losses on investments 47,506 64,146 Changes in assets and liabilities: Accounts and other receivables (129,046) 38,445 Grants receivable (599,226) 949,411 Deferred rent receivable (104,723) (138,069) Deferred lease incentives 213,896 (1,042,040) Other assets 17,348 4,812 Accounts payable and accrued expenses (1,078,332) (35,166) Deferred rent 52,353 - Deferred compensation plan asset 35,534 15,500 NET CASH PROVIDED BY OPERATING ACTIVITIES 277, ,304 CASH FLOWS FROM INVESTING ACTIVITIES Deferred compensation plan (35,534) (15,500) Proceeds from sales of investments 53,520,372 27,868,490 Purchases of investments (45,377,408) (28,048,200) Purchases of property and equipment (57,075) (70,904) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 8,050,355 (266,114) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on note payable (8,000,000) - Bond issuance costs (308,719) - NET CASH USED IN FINANCING ACTIVITIES (8,308,719) - NET INCREASE IN CASH AND CASH EQUIVALENTS 19, ,190 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,238,903 2,102,713 CASH AND CASH EQUIVALENTS, END OF YEAR $ 2,258,360 $ 2,238,903 SUPPLEMENTAL CASH FLOW INFORMATION Interest paid $ 393,918 $ 262,149 The accompanying notes are an integral part of these consolidated financial statements

7 1. Organization and Summary of Significant Accounting Policies Organization Independent Sector is a not-for-profit, nonpartisan coalition of approximately 550 national organizations, foundations and corporate philanthropy programs, collectively representing tens of thousands of charitable groups in every state across the nation. Its mission is to advance the common good by leading, strengthening and mobilizing the nonprofit and philanthropic community. Independent Sector works to promote effective policies and a healthy legislative environment to help not-for-profit initiatives thrive; research and analyze the scope of the nonprofit sector and trends in giving and volunteering; strengthen accountability among nonprofit organizations; champion effective collaboration among the business, government and nonprofit sectors; communicate the value of successes of the American tradition of giving and volunteering; and provide the meeting ground for the leadership of the philanthropic and nonprofit sector to address emerging trends affecting the sector. Principles of Consolidation The consolidated financial statements of Independent Sector have been prepared on the accrual basis of accounting and include the accounts of 1602 IS LLC. Independent Sector established 1602 IS LLC, a single member limited liability company, to own and operate its headquarters building located at 1602 L Street, NW, Washington, DC. Independent Sector and 1602 IS LLC are collectively referred to as Independent Sector. Cash Equivalents Independent Sector considers money market funds held for operating purposes to be cash equivalents. Investments Investments are composed of Treasury notes, money market funds and cash invested for investment purposes. Money market funds deemed to be held for long-term purposes are included with investments, rather than cash equivalents, in the consolidated statement of financial position. These investments are carried at fair value, based upon quoted market prices. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Property and Equipment and Related Depreciation and Amortization Property and equipment is stated at cost and is depreciated using the straight-line method. Donated furniture and equipment is stated at the fair value at the date of donation. The building is depreciated over 40 years. Building improvements are depreciated over 10 years. Furniture and equipment is depreciated over an estimated useful life of 5 years. Software is amortized over an estimated useful life of 5 years. Equipment purchased under capital leases is - 5 -

8 1. Organization and Summary of Significant Accounting Policies (continued) Property and Equipment and Related Depreciation and Amortization (continued) amortized over the life of the lease. Acquisitions of property and equipment of more than $1,000 and expenditures for major repairs and improvements are capitalized; expenditures for minor repairs and maintenance costs are expensed when incurred. Upon the retirement or disposal of assets, the cost and accumulated depreciation or amortization are eliminated from the respective accounts and the resulting gain or loss is included in revenue or expenses. Bond Issuance Costs Bond issuance costs represent the costs associated with the bonds issued. These costs are amortized over the life of the bonds, which is 30 years. Classification of Net Assets The net assets of Independent Sector are classified and reported as follows: Unrestricted net assets represent the portion of expendable funds that are available for support of Independent Sector s operations. Board-designated net assets represent a portion of unrestricted net assets for designated programs and consist of the long-term reserve fund, which was created to establish a corpus from which investment income will be used for general operations. Temporarily restricted net assets are specifically restricted by donors for various programs or for specific periods. Revenue Recognition Unrestricted grants and contributions are reported as revenue in the year in which payments are received and/or unconditional promises are made. Grants and contributions are reported 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 consolidated statement of activities as net assets released from restrictions. Membership contributions are recognized as revenue in the period received. Rental income is recognized as revenue in the year in which the rental period pertains. Conference fees are recognized in the year in which the event is held

9 1. Organization and Summary of Significant Accounting Policies (continued) Functional Allocation of Expenses The costs of providing various programs and other activities have been summarized on a functional basis in the consolidated statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited based on the percentage of general and administrative costs over program costs. Estimates The preparation of consolidated 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 these estimates. 2. Investments Investments, at fair value, consisted of the following as of December 31, 2010: U.S. Treasury notes $ 5,812,993 Domestic money market funds 1,154,120 Cash 154,319 Total Investments $ 7,121,432 For the year ended December 31, 2010, investment income consisted of the following: Interest and dividends $ 99,043 Realized and unrealized losses (47,506) Total $ 51,537 Included in interest and dividends is $3,133 of interest earned on cash during the year ended December 31,

10 3. Grants receivable Grants receivable consisted of amounts due from foundations and corporations. All amounts are considered fully collectible and were due as follows as of December 31, 2010: Within one year $ 1,690,814 One to five years 932,500 Total $ 2,623, Property and Equipment Property and equipment consisted of the following at December 31, 2010: Building $ 26,728,691 Land 5,391,820 Building improvements 2,288,910 Furniture, equipment and software 1,339,659 Total Property and Equipment 35,749,080 Less: Accumulated Depreciation and Amortization (3,039,630) Property and Equipment, net $ 32,709,450 Depreciation and amortization expense was $999,490 for the year ended December 31, Notes Payable On February 12, 2008, 1602 IS LLC signed a loan document with Wachovia Bank, National Association (Wachovia) for a $31,000,000 bridge loan to finance the acquisition and renovation of the headquarters building for Independent Sector located at 1602 L Street, NW, Washington, DC. On June 4, 2010, Independent Sector reduced its outstanding debt by $8,000,000 and refinanced the remaining balance of $23,000,000 on its bridge loan with the following debt instruments: The District of Columbia issued multi-modal revenue bonds (the Bonds) totaling $15,000,000 under the indenture of trust agreement dated June 1, 2010, between Wells Fargo Bank, N.A. (the Bank), as trustee, and Independent Sector, the borrower. The Bonds mature on June 1, 2013, although this maturity date may be extended through June 1, 2040, and Independent Sector fully expects to do so. Interest on the unpaid balance of the Bonds is equal to 67% of - 8 -

11 5. Notes Payable (continued) the LIBOR-based rate plus 2.15% per annum and is due monthly, beginning July 1, No principal payments are due until Independent Sector has pledged the related land, building and improvements as collateral for the Bonds. Independent Sector obtained a $1,200,000 note with the Bank on June 4, Interest on the unpaid balance of the note is equal to the LIBOR-based rate plus 2.90% per annum and is due monthly, beginning July 1, No principal payments are due until The principal balance and any accrued interest are due on June 1, Independent Sector has pledged the related land, building and improvements as collateral for this note. Independent Sector also obtained a $4,500,000 note with the Bank on June 4, Interest on the unpaid balance of the note is equal to LIBOR-based rate plus 1.50% per annum and is due monthly, beginning July 1, No principal payments are due until The principal balance and any accrued interest are due on June 4, This note is secured by a $5,000,000 pledged collateral account, which is included in restricted investments in the accompanying consolidated statement of financial position. Finally, Independent Sector obtained a $2,300,000 note with the Bank on June 3, Interest on the unpaid balance of the note is equal to the LIBOR-based rate plus 3.50% per annum and is due monthly, beginning July 1, Annual principal payments of $350,000 are due beginning June 1, 2011, provided the note is renewed by the Bank annually. The remaining principal balance and any accrued interest are due on June 1, This note is unsecured. Certain covenants, such as a debt coverage service ratio and a minimum liquidity threshold apply to the notes payable. Independent Sector was in compliance with all covenants as of December 31, As of December 31, 2010, the future minimum principal payments on the notes payable are as follows: For the Year Ending December 30, 2011 $ 350, , ,300,000 Total $ 23,000,000 Interest expense was $444,336 for the year ended December 31, 2010, and is included in building services in the accompanying consolidated statement of activities

12 6. Temporarily Restricted Net Assets At December 31, 2010, temporarily restricted net assets consisted of the following: Project: Advancing Advocacy Initiative $ 500,000 Advocacy Capability Study 500,000 NGen Initiative 450,000 Building 166,667 Ethics and Accountability 112,677 Public Policy Initiative 62,047 Charting Impact 53,000 Total Projects 1,844,391 Time-Restricted Grants 2,516,900 Total Temporarily Restricted Net Assets $ 4,361, Net Assets and Member s Retained Earnings The unrestricted net assets of Independent Sector are reported as unrestricted and boarddesignated net assets. Unrestricted net assets represent the portion of expendable funds that are available to support the operations of Independent Sector, while board-designated net assets represent a designated portion of unrestricted net assets invested to give a steady source of income for support of Independent Sector s operations. As of December 31, 2010, boarddesignated net assets consisted of $5,000,000 from the long-term reserve fund. Independent Sector has the objective to maintain the purchasing power of its board-designated funds over time. Independent Sector s spending and investment policies work together to achieve this objective. Independent Sector s retained surplus of 1602 IS LLC was eliminated in the consolidation. 8. Fair Value Measurements In accordance with accounting standards for fair value measurements for financial assets (and liabilities) measured on a recurring basis, Independent Sector has categorized its applicable financial instruments into a required fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument

13 8. Fair Value Measurements (continued) Applicable financial assets and liabilities are categorized based on the inputs to the valuation techniques as follows: Level 1 Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities accessible at the measurement date. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets. Level 3 Unobservable inputs for the asset or liability including the reporting entity s own assumptions in determining the fair value measurement. The following table summarizes the assets measured at fair value on a recurring basis as of December 31, 2010: Quoted Prices in Active Markets for Significant Identical Other Assets/ Observable Liabilities Inputs Fair Value (Level 1) (Level 2) U.S. Treasury notes $ 5,812,993 $ - $ 5,812,993 Money market funds 1,154,120 1,154,120 - Cash 154, ,319 - Total $ 7,121,432 $ 1,308,439 $ 5,812, Commitments Building On February 12, 2008, 1602 IS LLC purchased a nine-story, 52,896 square-foot building to serve as Independent Sector s headquarters. Independent Sector occupies the top three floors and part of the concourse level, and the remaining floors are available for leasing. Tenants are currently committed to lease four floors, with one floor remaining to be leased. The noncancelable leases expire between May 31, 2012, and February 28, 2019, and contain fixed escalation clauses for increases in the annual minimum rent and incentive allowances for

14 9. Commitments (continued) Building (continued) leasehold improvements. Under accounting principles generally accepted in the United States of America, all fixed rent increases and rent incentives are recognized on a straight-line basis over the term of the lease. The difference between the income and the required lease payments to be received is reflected as deferred rent receivable in the accompanying consolidated statement of financial position. Future minimum rental income is as follows: For the Year Ending December 31, 2011 $ 851, , , , ,267 Thereafter 1,267,037 Total $ 4,959,289 Financial Support to Related Entity 1602 IS LLC is a single member limited liability company that has elected to be treated as a disregarded entity. Management of Independent Sector has represented that it intends to provide financial support, as necessary, to 1602 IS LLC sufficient to ensure the continued operations of the entity. Employment Agreement Independent Sector has an employment contract with its President and CEO. The original agreement was for the year ended December 31, 2006, and has been renewed on an annual basis. Under the terms of the agreement, should Independent Sector terminate the executive s employment without cause, Independent Sector would be obligated to pay severance in the amount equal to one year of the executive s base salary as of the date of the notice of termination, less applicable withholding taxes

15 9. Commitments (continued) Contracts Independent Sector has entered into agreements with several hotels to provide conference facilities and room accommodations for its meetings through The agreements contain various clauses whereby Independent Sector is liable for liquidated damages in the event of cancellation or lower than anticipated attendance. Management of Independent Sector does not believe that any losses will be incurred under these contracts. 10. Donated Services For the year ended December 31, 2010, Independent Sector received donated services, which have an estimated value of $199,405. The services are included in contribution revenue and annual conference and emerging issues expenses in the accompanying consolidated statement of activities. The donations consisted of consulting services, equipment and consumable supplies toward program work related to Envisioning Our Future and consumable supplies during the annual conference. 11. Retirement Plans Defined Contribution Plan Independent Sector provides retirement benefits for its employees through a 403(b) defined contribution plan. Under the 403(b) plan, all full-time employees of Independent Sector who are at least 21 years of age are eligible to contribute from 2% to 100% of their total pay, up to the federal tax limitation of $16,500 for Employees of Independent Sector who have completed one year of service in which they have worked at least 1,000 hours are eligible for employer-matching contributions of 100% to 200% on the first 5% of the employee s contribution to the plan, depending upon years of service. Employees are always 100% vested in their own contributions. Vesting in the employer contributions to the plan is based on completed years of service, with 100% vesting by the end of three completed years of service. For the year ended December 31, 2010, employer contributions were $217,841. Deferred Compensation Plan Independent Sector offers its executives or highly compensated employees an opportunity to defer compensation pursuant to Section 457(b) of the Internal Revenue Code to supplement such employees retirement benefits under the employer s Employee Retirement Income Security Act (ERISA) qualified retirement plan. Employees are fully vested when plan

16 11. Retirement Plans (continued) Deferred Compensation Plan (continued) contributions are made. Plan assets are invested in a combination of stocks and mutual funds. Qualifying distributions may be made in a lump sum or in equal annual installments over a certain term as elected by the participant not to exceed ten years. 12. Concentration of Risk Independent Sector maintains its cash and cash equivalents with certain commercial financial institutions, which aggregate balance, at times, may exceed the Federal Deposit Insurance Corporation (FDIC) insured limit of $250,000 per depositor per institution. As of December 31, 2010, Independent Sector had approximately $2,130,000 comprised of demand deposits, which exceeded the maximum limit insured by the Federal Deposit Insurance Corporation (FDIC) by approximately $1,975,115. Independent Sector monitors the creditworthiness of these institution and has not experienced any credit losses on its cash and cash equivalents. 13. Income Tax Status Under Section 501(c)(3) of the Internal Revenue Code, Independent Sector is exempt from the payment of income taxes on income other than unrelated business income. For the year ended December 31, 2010, no provision for income taxes was required, as Independent Sector has no unrelated business tax liability IS LLC is a single member limited liability company that has elected to be treated as a disregarded entity. As such, 1602 IS LLC is not subject to federal income tax, but rather, its income or loss inures to Independent Sector IS LLC is subject to the District of Columbia business franchise tax. There is no tax provision necessary to be accrued as of December 31, Effective January 1, 2009, Independent Sector adopted the authoritative guidance relating to accounting for uncertainty in income taxes included in Accounting Standards Codification (ASC) Topic Income Taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity s consolidated financial statements and prescribe a threshold of more likely than not for recognition and derecognition of tax positions taken or expected to be taken in a tax return. Independent Sector performed an evaluation of uncertain tax positions for the year ended December 31, 2010, and determined that there were no matters that would require recognition in the consolidated financial statements or that may have any effect on its tax-exempt status. As of December 31, 2010, the statute of limitations for tax years 2007 through 2009 remains open with the U.S. federal

17 13. Income Tax Status (continued) jurisdiction or the various states and local jurisdictions in Independent Sector files tax returns. It is Independent Sector s policy to recognize interest and/or penalties related to uncertain tax positions, if any, in income tax expense. As of December 31, 2010, Independent Sector had no accruals for interest and/or penalties. 14. Prior Year Financial Information The consolidated 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 Independent Sector s consolidated financial statements for the year ended December 31, 2009, from which the summarized information was derived. 15. Reclassifications Certain 2009 amounts have been reclassified to conform to the 2010 presentation. 16. Subsequent Events In preparing these consolidated financial statements, Independent Sector s management has evaluated events and transactions for potential recognition or disclosure through March 29, 2011, the date the consolidated financial statements were available to be issued

18 SUPPLEMENTAL INFORMATION

19 CONSOLIDATED SCHEDULE OF FUNCTIONAL EXPENSES Program Services Fundraising Supporting Services Building Services Nonprofit & Emerging Philanthropic Issues & Total Total Total Total Public Annual Leadership & Strategic Communications Program Fundraising General and Membership Supporting Building Consolidated Policy Conference Practice Initiatives & Marketing Services Services Administrative Development Services Total Services Total Employee costs $ 705,258 $ 248,471 $ 521,346 $ 432,405 $ 312,933 $ 2,220,413 $ 347,842 $ 1,386,713 $ 366,989 $ 1,753,702 $ 4,321,957 $ - $ 4,321,957 Consultants 259, , , , , ,842 22, ,986 1,215, ,827 1,396,950 Occupancy 182,604 66,429 94,388 98,854 97, ,924 62, ,956 85, ,972 1,116,349-1,116,349 Depreciation and amortization , , , , ,490 Travel and meetings 20, ,911 49,947 3,848 1, , ,771 1,538 22, , ,960 Interest expense , ,336 Office supplies and expenses 30,082 41,574 36,171 2,662 13, , ,693 12, , , ,289 Printing and reproduction ,607 2,703 4,481 5,321 52, ,707 54,515 59, , ,734 Telephone 10,074 1,424 5,790 3,344 3,885 24,517 2,307 18,584 2,588 21,172 47,996 9,530 57,526 Postage and delivery 1,276 7,684 3, ,829 14, ,619 2,196 6,815 21,561-21,561 Subtotal 1,209, , , , ,315 4,136, ,040 2,736, ,393 3,284,377 7,836,068 1,442,084 9,278,152 Allocated costs 447, , , , ,767 1,530, ,565 (1,403,440) (280,687) (1,684,127) TOTAL EXPENSES $ 1,657,536 $ 1,315,793 $ 1,198,119 $ 748,683 $ 747,082 $ 5,667,213 $ 568,605 $ 1,333,544 $ 266,706 $ 1,600,250 $ 7,836,068 $ 1,442,084 $ 9,278,152 Percentage of Total Expenses 72.32% 7.26% 20.42% %