Financial Statements and Independent Auditors Report
Financial Statements Contents Independent Auditors Report... 1-2 Financial Statements Statements of Financial Position... 3 Statements of Activities... 4-5 Statements of Cash Flows... 6 Notes to Financial Statements... 7-17 Supplementary Information Schedules of Functional Expenses... 18-19
Rogers & Company PLLC Certified Public Accountants 8300 Boone Boulevard Suite 600 Vienna, Virginia 22182 703.893.0300 voice 703.893.4070 facsimile www.rogerspllc.com INDEPENDENT AUDITORS REPORT To the Executive Committee of Lawyers for Civil Justice We have audited the accompanying financial statements of Lawyers for Civil Justice (LCJ), which comprise the statement of financial position as of December 31, 2016, the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LCJ as of December 31, 2016, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter The financial statements of LCJ as of December 31, 2015, were audited by other auditors whose report, dated May 27, 2016, expressed an unmodified opinion on those statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information included on page 18 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The information for the year ended December 31, 2015 on page 19 was subjected to the auditing procedures applied in the audit of the basic financial statements by other independent auditors, whose report, dated May 27, 2016, indicated that such information is fairly stated in all material respects to the basic statements as a whole. Vienna, Virginia September 26, 2017 2
Statements of Financial Position 2016 2015 Assets Current assets: Cash $ 141,625 $ 350,472 Investments 860,290 708,073 Accounts receivable 5,790 1,014 Contributions receivable - 50,000 Prepaid expenses 24,710 19,872 Total current assets 1,032,415 1,129,431 Deposits 4,638 10,279 Property and equipment, net 16,766 27,451 Total assets $ 1,053,819 $ 1,167,161 Liabilities and Net Assets Liabilities Current liabilities: Accounts payable $ 5,958 $ 178,978 Deferred membership dues 62,500 135,000 Deferred rent 24,375 4,037 Total current liabilities 92,833 318,015 Total liabilities 92,833 318,015 Net Assets Unrestricted 925,986 839,146 Temporarily restricted 35,000 10,000 Total net assets 960,986 849,146 Total liabilities and net assets $ 1,053,819 $ 1,167,161 See accompanying notes. 3
Statement of Activities For the Year Ended December 31, 2016 Temporarily Unrestricted Restricted Total Revenue and Support Membership dues corporate $ 500,000 $ - $ 500,000 Membership dues associate 331,482-331,482 Contributions 11,000 315,000 326,000 Registration fees 103,901-103,901 Investment income 22,048-22,048 Meetings and events 19,048-19,048 Loss on disposal of property and equipment (6,804) - (6,804) Released from restrictions 290,000 (290,000) - Total revenue and support 1,270,675 25,000 1,295,675 Expenses Program services: Discovery 486,100-486,100 Cost allocation 37,768-37,768 Class action, mass tortes, and MDLs 70,924-70,924 Third party litigation funding 21,189-21,189 30(b)(6) 21,189-21,189 Membership services 318,101-318,101 Total program services 955,271-955,271 Supporting services: General and administrative 211,986-211,986 Fundraising 16,578-16,578 Total supporting services 228,564-228,564 Total expenses 1,183,835-1,183,835 Change in Net Assets 86,840 25,000 111,840 Net Assets, beginning of year 839,146 10,000 849,146 Net Assets, end of year $ 925,986 $ 35,000 $ 960,986 See accompanying notes. 4
Statement of Activities For the Year Ended December 31, 2015 Temporarily Unrestricted Restricted Total Revenue and Support Membership dues corporate $ 560,000 $ - $ 560,000 Membership dues associate 307,000-307,000 Contributions 150,000 220,000 370,000 Registration fees 102,379-102,379 Investment loss (11,593) - (11,593) Meetings and events 18,364-18,364 Released from restrictions 280,000 (280,000) - Total revenue and support 1,406,150 (60,000) 1,346,150 Expenses Program services: Discovery 324,990-324,990 Cost allocation 109,474-109,474 Class action, mass tortes, and MDLs 315,955-315,955 Membership services 388,030-388,030 Total program services 1,138,449-1,138,449 Supporting services: General and administrative 128,788-128,788 Fundraising 17,165-17,165 Total supporting services 145,953-145,953 Total expenses 1,284,402-1,284,402 Change in Net Assets 121,748 (60,000) 61,748 Net Assets, beginning of year 717,398 70,000 787,398 Net Assets, end of year $ 839,146 $ 10,000 $ 849,146 See accompanying notes. 5
Statements of Cash Flows For the Years Ended 2016 2015 Cash Flows from Operating Activities Change in net assets $ 111,840 $ 61,748 Adjustments to reconcile change in net assets to net cash (used in) provided by operating activities: Realized and unrealized (gain) loss on investments (18,425) 10,584 Depreciation and amortization 11,988 12,248 Disposal of property and equipment 6,804 - Change in operating assets and liabilities: (Increase) decrease in: Accounts receivable (4,776) 537 Contributions receivable 50,000 (50,000) Prepaid expenses (4,838) 917 Deposits 5,641 (4,637) Increase (decrease) in: Accounts payable (173,020) 109,041 Deferred membership dues (72,500) 22,500 Deferred rent 20,338 (4,351) Net cash (used in) provided by operating activities (66,948) 158,587 Cash Flows from Investing Activities Purchases of property and equipment (8,107) (10,034) Maturities of certificates of deposit - 751,744 Purchase of certificates of deposit - (699,979) Purchases of investments (1,381,047) (319,523) Proceeds from sales of investments 1,247,255 15,624 Net cash used in investing activities (141,899) (262,168) Net Decrease in Cash (208,847) (103,581) Cash, beginning of year 350,472 454,053 Cash, end of year $ 141,625 $ 350,472 See accompanying notes. 6
Notes to Financial Statements 1. Nature of Operations The Lawyers for Civil Justice (LCJ) was incorporated on May 20, 1987, pursuant to the provisions of the District of Columbia Nonprofit Corporation Act. Created by corporate and defense trial counsel, LCJ is a national coalition supporting excellence, fairness and improvements within the civil justice system. It supports activities at both the state and national levels designed to achieve reforms, which will ensure balance in the civil justice system. Greater predictability in damage awards, streamlining the discovery process, and improving the management of litigation and scarce judicial resources are all long-range goals of LCJ. LCJ plays a unique role in the civil justice reform movement by coalescing the resources of the defense trial lawyers with the support of a significant segment of the business community. LCJ is supported by three national defense trial lawyer associations with members throughout the United States, and it works closely with over 60 state defense trial lawyer organizations. The three national associations are DRI, Federation of Defense & Corporate Counsel, and the International Association of Defense Counsel. Since defense trial lawyers of these associations are directly involved in the defense of clients in the courtroom, they provide the solid basis from which to address fundamental weaknesses of the civil justice system. LCJ offers a counterbalance to an organized plaintiffs bar on civil justice reform issues. It provides a sharp contrast to some existing legal organizations that rigidly seek to preserve the status quo a position that has become increasingly unpopular with consumers and providers of products and services. LCJ provides defense trial lawyers with a more united voice to educate the public on the need for civil justice reform. By assuring its member the opportunity to participate fully in hearings, forums, and other public policy debates, LCJ has become a part of a working network of other organizations and corporations promoting reform. LCJ members meet twice annually with conferences focusing on legislative as well as judicial rulemaking activities. Recent participants have included a prominent array of judges, policymakers, and lawmakers. 2. Summary of Significant Accounting Policies Basis of Accounting and Presentation LCJ s financial statements are prepared on the accrual basis of accounting. Net assets are reported based on the presence or absence of donor-imposed restrictions. 7
Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Classification of Net Assets Unrestricted net assets represent funds that are not subject to donor-imposed stipulations and are available for support of LCJ s operations. Temporarily restricted net assets represent funds subject to donor-imposed restrictions that are met either by actions of LCJ or by the passage of time. Temporarily restricted net assets were $35,000 and $10,000 at December 31, 2016 and 2015, respectively Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Investments Investment are stated at fair value, based on quoted market prices. All realized and unrealized gains and losses are included in investment income (loss) in the accompanying statements of activities. Investment earnings are comprised of realized and unrealized gains and losses, interest and dividends, and investment management fees. Accounts Receivable Accounts receivable consists of unsecured amounts due from program participants and funding sources whose ability to pay is subject to changes in general economic conditions. LCJ provides an allowance for bad debts using the allowance method, which is based on management s judgment considering historical information. Accounts are individually analyzed for collectability, and will be reserved based on individual evaluation and specific circumstances. When all collection efforts have been exhausted, the accounts are written-off against the related allowance. Contributions Receivable Contributions receivable represent unconditional amounts committed to LCJ. Management determines the allowance for doubtful accounts based upon review of outstanding receivables, historical collection information, and existing economic conditions. 8
Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Contributions Receivable (continued) Management believes that all contributions receivable are collectible at December 31, 2016 and 2015; accordingly, no allowance for uncollectible accounts has been established. Property and Equipment Fixed assets are recorded at cost. Contributed assets are recorded at fair value. LCJ capitalizes all property and equipment acquisitions in excess of $300. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from three to ten years. When assets are retired or sold, the costs and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is reflected in operations. Expenditures for repairs and maintenance are expensed as incurred. Revenue Recognition All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. LCJ reports contributions as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. However, restrictions met in the same accounting period in which the related contribution was received are treated as unrestricted. Membership dues for the support of the organization are recorded as revenue in the year to which the membership applies. As of, deferred membership dues totaled $62,500 and $135,000, respectively. LCJ reports gifts of equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. LCJ reports expirations of donor restrictions when the donated or acquired assets are placed in service. Trade receivables related to program service fees (i.e. registration fees) are recognized as revenue on the accrual basis of accounting at the time the program activity has occurred. Credit is extended for a period of 60 days with no interest accrual, at which time payment is considered delinquent. Trade receivables may be written off as uncollectible when payment has not been received after 180 days. 9
Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Revenue Recognition (continued) Conference registration revenue is recognized at the time of the event. Revenue from all other sources is recognized when earned. Donated Services Donated services and materials are recognized as contributions in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958, Accounting for Contributions Received and Contributions Made, if the services received create or enhance nonfinancial assets or require specialized skills, and are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. Contributed services and promises to give services that do not meet the above criteria are not recognized. There were no donated services recognized as revenue in these financial statements. The time devoted by members of LCJ s Board is uncompensated and is not reflected as donated services. In addition, LCJ receives a substantial amount of services donated by volunteers, but these services are not recognized as revenue since the recognition criteria were not met. 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. Reclassifications Certain amounts in the 2015 financial statements have been reclassified to conform to the 2016 presentation. These reclassifications have no effect on the change in net assets previously reported. Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases. The update requires a lessee to recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payments, in its statements of financial position. The guidance also expands the required quantitative and qualitative lease disclosures. The guidance is effective beginning in 2020. 10
Notes to Financial Statements 2. Summary of Significant Accounting Policies (continued) Recently Issued Accounting Pronouncements (continued) In August 2016, the FASB issued ASU 2016-14, Presentation of Financial Statements for Not-for-Profit Entities. The update changes the manner by which nonprofit organizations classify net assets as well as improves information presented in financial statements and notes about nonprofit organization liquidity, financial performance, and cash flows. The guidance is effective beginning in 2018. Subsequent Events In preparing these financial statements, LCJ has evaluated events and transactions for potential recognition or disclosure through September 26, 2017, the date the financial statements were available to be issued. 3. Concentrations Credit Risk Financial instruments that potentially subject LCJ to significant concentrations of credit risk consist of cash and investments. LCJ maintains cash deposit and transaction accounts, along with investments, with various financial institutions and these values, from time to time, exceed insurable limits under the Federal Depository Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC). LCJ has not experienced any credit 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 credit loss is minimal. Revenue Risk LCJ depends on membership dues and contributions for a significant portion of its revenue. The ability of LCJ s members and contributors to continue giving amounts comparable with prior years may be dependent upon future economic conditions. While LCJ s Board and management believe LCJ has the resources to continue its programs, its ability to do so and the extent to which it continues may be dependent on the above factors. 11
Notes to Financial Statements 3. Concentrations (continued) Revenue Risk (continued) Based on the nature and purpose of LCJ, significant revenues are received through parties interested in restoring and maintaining balance in the civil justice system. During the current year, approximately 24% of total revenues were derived from contributions from two separate organizations. In addition, membership dues in the amount of $500,000 were derived from 26 corporate members. 4. Investments and Fair Value Measurements Investment income (loss) consisted of the following for the years ended December 31: 2016 2015 Interest and dividends $ 8,007 $ 1,523 Realized and unrealized gain (loss) 18,425 (10,584) Less: management fees (4,384) (2,532) Total investment income (loss) $ 22,048 $ (11,593) LCJ follows FASB ASC 820, Fair Value Measurements and Disclosures, for its financial assets. This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value measurement standards require an entity to maximize the use of observable inputs (such as quoted prices in active markets) and minimize the use of unobservable inputs (such as appraisals or other valuation techniques) to determine fair value. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the entity s perceived risk of that instrument. The inputs used in measuring fair value are categorized into three 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. LCJ recognizes transfers between levels in the fair value hierarchy at the end of the reporting period. In general, and where applicable, LCJ uses quoted prices in active markets for identical assets to determine fair value. This pricing methodology applies to Level 1 investments. 12
Notes to Financial Statements 4. Investments and Fair Value Measurements (continued) The following table presents LCJ s fair value hierarchy for those investments measured on a recurring basis at December 31, 2016: Level 1 Level 2 Level 3 Total Money market funds $ 85,872 $ - $ - $ 85,872 Certificates of deposit 496,400 - - 496,400 Mutual funds: Short-term bond 26,207 - - 26,207 Small blend 13,952 - - 13,952 Large blend 6,729 - - 6,729 Mid blend 6,970 - - 6,970 Large growth 22,633 - - 22,633 Common stocks: Basic materials 14,062 - - 14,062 Consumer discretionary 9,505 - - 9,505 Consumer staples 3,871 - - 3,871 Energy 3,526 - - 3,526 Financial 27,406 - - 27,406 Health care 29,400 - - 29,400 Industrial goods 12,343 - - 12,343 Information technology 19,972 - - 19,972 Services 19,436 - - 19,436 Telecommunication services 4,313 - - 4,313 Closed-end funds 6,651 - - 6,651 Exchange-traded funds 51,042 - - 51,042 Total investments $ 860,290 $ - $ - $ 860,290 13
Notes to Financial Statements 4. Investments and Fair Value Measurements (continued) The following table presents LCJ s fair value hierarchy for those investments measured on a recurring basis at December 31, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 388,677 $ - $ - $ 388,677 Certificates of deposit 110,168 - - 110,168 Mutual funds: Short-term bond 25,875 - - 25,875 Small blend 11,819 - - 11,819 Large blend 6,406 - - 6,406 Mid blend 6,691 - - 6,691 Large growth 23,867 - - 23,867 Common stocks: - Basic materials 8,236 - - 8,236 Consumer discretionary 4,992 - - 4,992 Consumer goods 3,001 - - 3,001 Consumer staples 2,698 - - 2,698 Energy 1,953 - - 1,953 Financial 15,666 - - 15,666 Health care 21,520 - - 21,520 Industrial goods 5,042 - - 5,042 Information technology 12,432 - - 12,432 Services 11,826 - - 11,826 Utilities 2,597 - - 2,597 Closed-end funds 4,199 - - 4,199 Exchange-traded funds 40,408 - - 40,408 Total investments $ 708,073 $ - $ - $ 708,073 14
Notes to Financial Statements 5. Property and Equipment Property and equipment consists of the following at December 31: Computer equipment and related $ 16,058 $ 17,209 Office furniture and equipment 18,305 29,836 Leasehold improvements - 1,494 Website, online library, and logo 16,791 16,791 Total property and equipment 51,154 65,330 Less: accumulated depreciation and amortization (34,388) (37,879) Property and equipment, net $ 16,766 $ 27,451 6. Temporarily Restricted Net Assets 2016 2015 Temporarily restricted net assets were restricted for protective orders and other scholarships and totaled $35,000 and $10,000 at, respectively. 7. Commitments and Contingencies Operating Leases LCJ entered into a sublease agreement on July 14, 2011, with the Washington Real Estate Investment Trust to rent office space located at 1140 Connecticut Avenue, NW, Suite 503, Washington, DC. The lease term was effective for a sixty-six (66) month period beginning on March 1, 2011, and expired on August 31, 2016. Monthly rent payments of $4,988 were required for the period of March 1, 2011 through July 31, 2011. After a thirty (30) day abatement period during the month of August, increased lease payments of $5,642 began on September 1, 2011. The lease calls for a yearly escalation of 2.5% effective on the first day of March. On December 23, 2015, LCJ entered into a sublease agreement with Gateway Monterey, Inc. to rent office space located at 1530 Wilson Boulevard, Arlington, Virginia. The lease term is effective for a one hundred and two (102) month period beginning on August 1, 2016 and expiring on January 31, 2025. 15
Notes to Financial Statements 7. Commitments and Contingencies (continued) Operating Leases (continued) After a six months abatement period from August to January 2017, lease payments of $4,638 will begin on February 1, 2017. The lease calls for a yearly escalation of 2.75% effective on the first day of August. As an additional requirement of this lease agreement, a rental security deposit in the amount of $4,638 was required. LCJ is obligated to pay a proportion of the annual increase in operating costs, insurance, and real estate taxes on the leased property. LCJ entered into an operating lease agreement with Higher Logic for online hosting services of the Member Online Library for a period of forty-eight (48) months. The agreement, effective May 4, 2015, requires a monthly fee of $600. LCJ entered into an operating lease agreement on April 9, 2015, for the rental of a postage machine and scale. This lease was for a period of thirty-nine (39) months at a monthly rate of $29 with maturity on July 19, 2018. Prior to this lease agreement, the postage machine and scale was rented on a month-to-month basis. Total rental expense for all operating leases was $81,286 and $79,197 for the years ended Future minimum lease payments under all operating leases are as follows for the years ending December 31: Hotel Commitments 2017 $ 59,196 2018 65,209 2019 61,828 2020 61,062 2021 62,741 Thereafter 204,528 Total future minimum lease payments $ 514,564 LCJ has commitments with various hotels within the United States for its Membership Meeting to be held through 2018 and Board Meeting to be held through 2019. There is a penalty clause associated with these agreements in the event the hotel does not generate a mutually determined amount of revenue. No provision for liability has been recorded because in the opinion of management, the likelihood of cancellation is remote. 16
Notes to Financial Statements 8. Retirement Plan SEP-IRA Plan Effective February 1, 2014, LCJ provides pension benefits for its employees through a defined contribution SEP-IRA retirement plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Provisions of the plan allow for employees to contribute up to the statutory limits set by the Internal Revenue Code (IRC). LCJ contributed 15% through August 31, 2014, and 8% thereafter, of an employee s gross monthly salary to the plan without regard to employee withholding. Employees are eligible to participate after six months of employment. The employer expense for the years ended was $26,924 and $25,890, respectively. 9. Related Parties Various Board members of LCJ and companies for which they are affiliated, paid membership dues and made contributions to LCJ. Membership dues and contributions in the amount of $334,500 and $0, respectively, were recognized as revenue during the year ended December 31, 2016. Membership dues and contributions in the amount of $300,000 and $39,500, respectively, were recognized as revenue during the year ended December 31, 2015. 10. Income Taxes LCJ is exempt from payment of taxes on income other than net unrelated business income under IRC Section 501(c)(6. For the years ended, there was no unrelated business income and, accordingly, no federal or state income taxes have been recorded. Management has evaluated LCJ s tax positions and concluded that the financial statements do not include any uncertain tax positions. 17
SUPPLEMENTARY INFORMATION
Schedule of Functional Expenses For the Year Ended December 31, 2016 Program Services Supporting Services Class Action, Third Party Cost Mass Tortes, Litigation Membership General and Discovery Allocation and MDLs Funding 30(b)(6) Services Administrative Fundraising Total Salaries and wages $ 25,401 $ 25,401 $ 47,701 $ 14,251 $ 14,251 $ 128,821 $ 65,599 $ 11,150 $ 332,575 Fringe benefits 5,708 5,708 10,718 3,202 3,202 28,945 14,740 2,505 74,728 Temporary help 75 75 140 42 42 378 193 33 978 Legal services 433,075 - - - - - - - 433,075 Continuing legal education - - - - - - 3,089-3,089 Computer and website - - - - - - 26,644-26,644 Dues and subscriptions - - - - - - 200-200 Corporate insurance - - - - - - 3,767-3,767 Office supplies - - - - - - 5,205-5,205 Printing, design, and production - - - - - - 1,813-1,813 Office rent 5,632 5,632 10,577 3,160 3,160 14,545 28,563 2,472 73,741 Postage and freight - - - - - - 1,748-1,748 Telephone and internet 737 737 1,385 414 414 3,739 1,904 324 9,654 Bank and credit card fees - - - - - - 4,558-4,558 Accounting and payroll fees 215 215 403 120 120 1,088 30,160 94 32,415 Meetings and conferences - - - - - 135,914 - - 135,914 Travel - - - - - 4,671 - - 4,671 Consulting 15,257 - - - - - 3,827-19,084 Depreciation and amortization - - - - - - 11,988-11,988 Other - - - - - - 7,988-7,988 Total Expenses $ 486,100 $ 37,768 $ 70,924 $ 21,189 $ 21,189 $ 318,101 $ 211,986 $ 16,578 $ 1,183,835 18
Schedule of Functional Expenses For the Year Ended December 31, 2015 Program Services Supporting Services Class Action, Cost Mass Tortes, Membership General and Discovery Allocation and MDLs Services Administrative Fundraising Total Salaries and wages $ 45,978 $ 21,500 $ 45,978 $ 165,270 $ 72,199 $ 10,750 $ 361,675 Fringe benefits 8,104 3,656 8,104 43,373 19,506 1,828 84,571 Temporary help 81 38 81 292 127 19 638 Legal services 217,582 43,516 130,548 43,516 - - 435,162 Continuing legal education - - - 4,014 - - 4,014 Computer and website 1,857 868 1,858 11,476 2,916 435 19,410 Dues and subscriptions 200 94 200 720 314 47 1,575 Corporate insurance - - - - 3,552-3,552 Office supplies 615 288 616 2,213 967 144 4,843 Printing, design, and production 1,186 376 637 2,042 767 114 5,122 Office rent 9,419 4,404 9,419 33,857 14,791 2,202 74,092 Postage and freight 363 170 363 1,306 571 85 2,858 Telephone and internet 984 460 984 3,538 1,546 230 7,742 Bank and credit card fees - - - 3,636 319-3,955 Accounting and payroll fees 2,819 1,319 2,819 10,133 4,427 659 22,176 Meetings and conferences 33,428 30,675 30,675 51,115 149 97 146,139 Travel 817 382 816 2,935 1,282 191 6,423 Consulting - 1,000 81,300 2,997 2,910-88,207 Depreciation and amortization 1,557 728 1,557 5,597 2,445 364 12,248 Total Expenses $ 324,990 $ 109,474 $ 315,955 $ 388,030 $ 128,788 $ 17,165 $ 1,284,402 19