A NON-PROFIT CORPORATION FINANCIAL STATEMENTS FOR THE YEARS ENDED Lance Soll & Lunghard, LLP 203 North Brea Blvd Suite 203 Brea, CA 92821 41185 Golden Gate Circle Suite 103 Murrieta, CA 92562
A NON-PROFIT CORPORATION FINANCIAL STATEMENTS FOR THE YEARS ENDED
A NON-PROFIT FOR THE YEARS ENDED TABLE OF CONTENTS INDEPENDENT AUDITOR S REPORT... 1 Statement of Financial Position... 2 Statement of Activities... 3 Statement of Cash Flows... 4 Notes to Financial Statements... 5 Supplementary Information: Statement of Activities Schedules... 11 Page Number
A Professional Corporation INDEPENDENT AUDITOR'S REPORT To the Board of Directors California-Nevada Section American Water Works Association Rancho Cucamonga, California We have audited the accompanying statement of financial position of the California-Nevada Section American Water Works Association, (a Nevada Non Profit Corporation) as of December 31, 2011, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the California-Nevada Section American Water Works Association s management. Our responsibility is to express opinions on these financial statements based on our audit. The financial statements of the California-Nevada Section American Water Works Association as of December 31, 2010 were audited by other auditors whose report dated March 21, 2011 expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the California-Nevada Section American Water Works Association as of December 31, 2011, and the respective changes in financial position and 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 opinions on the financial statements that collectively comprise the California-Nevada Section American Water Works Association's financial statements as a whole. The statement of activities schedules, are presented for purposes of additional analysis and are not a required part of the financial statements. The statement of activities schedules are the responsibility of management and were derived from and relate 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. Brea, California February 9, 2012 Lance, Soll & Lunghard, LLP Orange County Temecula Valley Silicon Valley www.lslcpas.com
STATEMENT OF FINANCIAL POSITION ASSETS CURRENT ASSETS 2011 2010 Cash and Cash Equivalents $ 564,867 $ 234,741 Investments 310,838 209,734 Accounts Receivable 31,561 21,757 Receivable from Affiliate 252,659 273,213 Interest Receivable 298 318 Inventory 13,066 11,397 Prepaid Expenses 25,158 18,816 TOTAL CURRENT ASSETS 1,198,447 769,976 PROPERTY & EQUIPMENT 239,825 298,252 OTHER ASSETS 14,770 14,770 TOTAL ASSETS $ 1,453,042 $ 1,082,998 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Current Portion of Long Term Debt $ 68,114 $ 67,500 Accounts Payable 21,111 23,244 Accrued Payroll 13,069 9,977 Accrued Vacation & Sick Payable 52,888 51,990 Deferred Revenue 66,725 61,390 TOTAL CURRENT LIABILITIES 221,907 214,101 LONG-TERM LIABILITIES 35,027 102,531 TOTAL LIABILITIES 256,934 316,632 NET ASSETS UNRESTRICTED Designated for Reserves 310,838 209,734 Undesignated 885,270 556,632 TOTAL NET ASSETS 1,196,108 766,366 TOTAL LIABILITIES AND NET ASSETS $ 1,453,042 $ 1,082,998 See Notes to Financial Statements 2
STATEMENT OF ACTIVITIES AND NET ASSETS FOR THE YEARS ENDED Unrestricted 2011 2010 REVENUES Events and Marketing Sch 1 $ 733,307 $ 833,697 Certification Sch 2 399,852 449,475 Membership Dues 505,865 448,326 Education Sch 3 498,136 340,264 Government Affairs Sch 4-16,250 Contributions - Development Revenue - 3,500 Royalties 1,473 2,360 Committees Sch 5 61,567 31,409 Total Operating Revenues 2,200,200 2,125,281 DIRECT PROGRAM SERVICE COSTS Events and Marketing Sch 1 393,989 564,979 Certification Sch 2 174,655 173,070 Education Sch 3 371,882 272,941 Government Affairs Sch 4 10,794 17,907 Committees Sch 5 70,384 31,401 TOTAL DIRECT PROGRAM SERVICE COSTS 1,021,704 1,060,298 SUPPORT SERVICE COSTS Salaries, Benefits & Related Costs 403,743 441,270 Outside Services 71,945 166,545 Occupancy & Related Costs 89,646 116,851 Depreciation 67,588 68,878 Travel & Related Costs 19,380 31,238 Bank & Credit Card Fees 33,146 30,014 Equipment Rentals, Leases & Maintenance 12,597 27,198 Office & Program Expenses 14,316 16,562 Meeting Expenses 5,860 5,634 Postage & Delivery 2,903 3,780 Dues & Subscriptions 2,780 3,492 Taxes and Licenses 2,946 3,271 Education, Training & Development 3,087 3,223 Printing 2,572 3,164 Insurance 1,185 2,303 Marketing 480 - Miscellaneous 1,541 757 Total Supporting Services 735,715 924,180 OTHER INCOME (EXPENSES) Interest Income 2,070 1,557 Other Income 518 1,875 Interest Expense (13,002) (11,966) Gain (Loss) on Disposal of Assets (428) (28,123) TOTAL OTHER INCOME (EXPENSES) (10,842) (36,657) NET INCREASE IN ASSETS BEFORE INCOME TAXES 431,939 104,146 PROVISION FOR TAXES (2,197) (102) INCREASE IN NET ASSETS 429,742 104,044 NET ASSETS, BEGINNING OF YEAR 766,366 662,322 NET ASSETS, END OF YEAR $ 1,196,108 $ 766,366 See Notes to Financial Statements 3
STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 2011 2010 CASH FLOWS FROM OPERATING ACTIVITIES Increases (decreased) in Net Assets $ 429,742 $ 104,044 Adjustments to reconcile net assets to net cash used by operating activities Depreciation 67,588 68,878 (Gain) Loss on Disposal of Asset 428 28,123 (Increase) Decrease in Operating Assets: Accounts Receivable (9,804) (20,409) Receivables from Affiliate 20,554 (10,545) Other Receivables 20 2,753 Inventory (1,669) 5,413 Prepaid Expenses (6,342) 21,429 Deposits - 330 Increase (decrease) in Operating Liabilities: Accounts Payable (2,133) (29,873) Accrued Payroll 3,092 (423) Accrued Vacation & Sick Payable 898 (15,805) Pension Plan Payable - (2,466) Deferred Revenue 5,335 16,305 NET CASH PROVIDED BY OPERATING ACTIVITIES 507,709 167,754 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of Property & Equipment (9,589) (10,230) NET CASH USED BY INVESTING ACTIVITIES (9,589) (10,230) CASH FLOWS FROM FINANCING ACTIVITIES Notes Payable Repayments (66,890) (56,855) NET CASH USED BY FINANCING ACTIVITIES (66,890) (56,855) NET DECREASE IN CASH AND CASH EQUIVALENTS 431,230 100,669 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 444,475 343,806 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 875,705 $ 444,475 SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year for: Interest $ 13,002 $ 11,966 Income Taxes $ 10 $ 2,795 NONCASH INVESTING AND FINANCING TRANSACTIONS ACQUISITION OF EQUIPMENT Cost of Equipment $ 44,619 $ 53,327 Capital Lease Obligation (44,619) (53,327) CASH DOWN PAYMENT FOR EQUIPMENT $ - $ - See Notes to Financial Statements 4
CALIFORNIA-NEVADA SECTION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 1: Nature of Activities and Summary of Significant Accounting Policies Organization and Nature of Activities The California-Nevada Section American Water Works Association ( the Section) is a Nevada nonprofit corporation. The Section is dedicated to serving California and Nevada exclusively by leading, educating and serving the drinking water community to ensure public health and to provide safe and sufficient water for all. Programs include certification, education, events and marketing and government affairs. Basis of Accounting The financial statements of the Section have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables and other liabilities. Basis of Presentation The Section is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. The Section had only unrestricted net assets as of December 31, 2011 and December 31, 2010. Cash and Cash Equivalents The Section considers cash and cash equivalents to be all monies in banks and highly liquid investments with an initial maturity dates of one year or less when purchased. The carrying values of cash and cash equivalents approximate fair value due to the short maturities of those financial instruments. Certificate of Deposit The total for cash in the accompanying financial statements includes two certificates of deposit for the year ending December 31, 2011. The first certificate of deposit totaling $50,407, and bears an interest rate of 0.3%. The second certificate of deposit totaling $100,347 bears an interest rate of 0.35%. Both certificates of deposit carry penalties for early withdrawal. For the year ending December 31, 2010 the balance includes only one certificate of deposit totaling $50,234 and bears an interest rate of 0.4%. The certificate of deposit carries penalties for early withdrawal. Any penalties for early withdrawal would not have a material effect on the financial statements. Accounts Receivable Accounts receivable are stated at unpaid balances, less allowance for doubtful accounts. The Section provides for losses on accounts receivable using the allowance method, which is based on experience and other circumstances. The Section charges off uncollectible accounts receivable when management determines the receivables will not be collected. At December 31, 2011 and 2010 management believes all accounts receivable are collectible and no allowance has been recorded. The Section did not have any accounts receivable more than ninety (90) days past due at December 31, 2011 and had $150 at December 31, 2010. Inventory Inventory consists of publications available for sale and is stated at the lower of the cost or market determined by the first-in, first-out method. Property, Equipment and Improvements Property and equipment is stated at cost. Assets held under capital leases are recorded at fair market value of the leased asset at the inception of the lease. Depreciation is computed on the straight-line method over the estimated lives of the assets that range from 5 to 5
CALIFORNIA-NEVADA SECTION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 1: Nature of Activities and Summary of Significant Accounting Policies (Continued) 10 years. The Section s capitalization policy provides for the capitalization of items of $1,000 and over. Repairs and maintenance are charged to the expense as incurred. Revenue Recognition and Deferred Revenue The Section recognizes revenues when earned. Amounts received or billed in advance of the period in which they are earned are recorded as a liability. Membership Dues Membership dues are billed by the American Water Works Association ( AWWA ) and forwarded to the Section. Total membership dues receivable from AWWA included in Receivable from Affiliates at December 31, 2011 and 2010 are $40,713 and $38,617 respectively. Membership Allotments Each section of the American Water Works Association is entitled to annual member allotments from the national association funds, based on all membership dues and subscription fees received by the association through August 31, 2010. The amount of the annual member allotment is determined by resolution of the national Board of Directors. The commitment fee to be received by the California-Nevada section for the 2012 and 2011 years are $211,946 and $228,772 respectively, and are included in the Receivable from Affiliates for the years ending December 31, 2011 and December 31, 2010. Income Taxes The Section is exempt from federal income tax under Section 501(C)3 of the Internal Revenue Code. However, income from certain activities not directly related to the Section s tax-exempt purpose is subject to taxation as unrelated business income. In addition, the Section qualifies for the charitable contribution deduction under Section 170(B)1(A) and has been classified as an organization other than a private foundation under Section 509(A)2. Contributions The Section accounts for capital campaign contributions at their estimated fair value when the donor makes a promise to give to the Section that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. The Section uses the allowance method to determine uncollectible, unconditional promises receivable. The allowance is based on prior years experience and management s analysis of specific promises made. As of December 31, 2011 and 2010 there were no promised receivables. Sales Tax The State of California imposes a sales tax on all of the Section s sales to non-exempt customers. The Section collects that sales tax from customers and remits the entire amount to the State Board of Equalization. The Section s accounting policy is to record amounts collected as a current liability. At December 31, 2011 and December 31, 2010 the Section s sales tax liability is $14 and $118, respectively and is included in Accounts Payable for each year. 6
CALIFORNIA-NEVADA SECTION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 1: Nature of Activities and Summary of Significant Accounting Policies (Continued) Vacation and Sick Expense Employees earn credits during the current year for future vacation and sick benefits. The expense and corresponding liability are accrued when earned rather than when paid. Use of Estimates The preparation of financial statements in accordance with the U.S. generally accepted accounting principles of accounting requires management to make estimates and assumptions that affect financial statement amounts and disclosures. Actual results could differ from those estimates. Subsequent Events Management has evaluated subsequent events through the date of this report. Note 2: Property and Equipment Property and equipment consist of the following at December 31: 2011 2010 Office and computer equipment and software $ 469,211 $ 462,648 Furniture and fixtures 65,563 65,563 Leasehold improvements 44,474 44,474 Total property and equipment 579,248 572,685 Less accumulated depreciation (339,423) (274,433) Net property and equipment $ 239,825 $ 298,252 Depreciation expense amounted to $67,588 and $68,878 during the years ended December 31, 2011 and December 31, 2010, respectively. Note 3: Long Term Liabilities Database managemnt software capital lease payable to California First National Bank. Payments commenced in Decmber 2008 for four years, due in monthly installments of $5,472. Interest rate of 7.94%. The lease is secured by the software lease. Copier equipment capital lease payable to Canon Financial Services. Payments commenced in January 2011 for five years, due in monthly installments of $1,126. Interest rate of 9.71%. The lease is secured by the equipment. $ 58,522 $ 116,704 44,619 53,327 Total Long-Term Liabilities 103,141 170,031 Less Current Portion 68,114 67,500 Net Long-Term Liabilities $ 35,027 $ 102,531 7
CALIFORNIA-NEVADA SECTION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 3: Long Term Liabilities (Continued) Future maturities of long-term liabilities are as follows as of December 31, 2011: Database Management Software Canon Copier Totals Principal Interest Principal Interest Principal Interest 2012 $ 58,522 $ 2,419 $ 9,592 $ 3,915 $ 68,114 $ 6,334 2013 - - 10,566 2,941 10,566 2941 2014 - - 11,640 1,867 11,640 1867 2015 - - 12,821 685 12,821 685 Total $ 58,522 $ 2,419 $ 44,619 $ 9,408 $ 103,141 $ 11,827 Note 4: Income Taxes The Section was granted an income tax exemption by the Internal Revenue Service; however, such exemption does not apply to unrelated business income. Unrelated business income consists primarily of advertising revenues. The components of the provision for the income taxes are as follows: Federal State Total Current $ 1,376 $ 821 $ 2,197 Total provision for income taxes $ 1,376 $ 821 $ 2,197 The Section adopted the provisions of FASB Accounting Standards Codification Topic 740 Accounting for Uncertainties in Income Taxes, on January 1, 2007. The federal (Form 990T) for 2009 to 2011 and California (Form 109) tax returns for 2008 to 2011 are subject to examination by the IRS and the California Franchise Tax Board respectively. Management has determined that there are no material uncertain tax positions taken that would affect the financial statements. Note 5: Retirement Plan Effective January 1, 2007, the Section has a 401(k) plan ( Plan ) to provide retirement and incidental benefits for its employees. Employees may contribute from 1% to 15% of their annual compensation to the Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service. The Section matches employee contributions up to a maximum of 6% per year per person. All matching contributions vest immediately. In addition, the Plan provides for discretionary contributions as determined by the board of directors. Such contributions to the Plan are allocated among eligible participants in the proportion of their salaries to the total salaries of all participants. The Section s contributions to the plan for years ended December 31, 2011 and 2010 were $20,939 and $23,640 respectively. 8
CALIFORNIA-NEVADA SECTION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 6: Leases The Section entered into a lease with Canon Business Solution in December 2010 for a new BW/Color Copier replacing the existing copier. The term of this lease is for 60 months for a monthly base rate of $1,115. In addition the Section is required to pay the taxes and insurance on the equipment. The Section entered into an agreement with Association Board of Certification (ABC) in September 2010 for Computer-Based Testing for Certification. ABC will be developing exams for Backflow, Cross Connection, Water Use Efficiency, Water lab, Water Treatment and Distribution. The original set up fee is $7,000 payable in 2011 and each exam charge is either $70.00 or $85.00 depending on the discipline. The Section ceased renting Suite D5 which was 1,824 square feet in September 2010 and entered into a new lease with MHW Realty which consists of only 4,228 rentable square feet in Suite D6/7. The lease is for two years beginning September 2010 for a decreased rent of $4,122. Effective September 1, 2011 the rent will be increased to $4,246 and the lease ends on August 31, 2012. The Section entered into a capital lease for the purchase of the database management software payable to California First National Bank. Payments commenced in December 2008 for four years with a monthly payment of $5,522.75, with an interest rate of 7.94%. Note 7: Commitments On September 22, 2010, the Section entered into a new agreement with Apogee Publications for three years. Apogee Publication s will organize, plan, print, promote and produce the Resource Guide annually, publish quarterly Source magazine and the Show guide, beginning with the Spring 2011 edition and ending with the Winter 2014 edition. Apogee agrees to pay the Section a royalty of $4,000 for each edition of the magazine and Resource Guide. The agreement can be terminated, without cause, by either party upon 60 days written notice. On January 11, 2011, the Section entered into a three year partnership with TargetSafety for online training. TargetSafety will provide a complete learning management system for members and will create a robust risk management water-industry website, customized and accessible to all members. The terms of the agreement require three annual installment payments beginning January 2011 with remaining payments of $41,145 and $61,770. Note 8: Contingencies and Concentrations Concentration of Credit Risk The Section places its temporary cash investments with high credit financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation ( FDIC ) insurance limit. The Section s checking accounts at December 31, 2011 and December 31, 2010 are not in excess of the FDIC insurance limits. The Section deposits funds with the California Local Agency Investment Fund, a pooled investment fund of California governmental agencies managed by the California State Treasury. The State is self-insured. On August 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit rating on the United States of America to AA+ from AAA. As a result, on August 8, 2011, Standard & Poor's Ratings Services lowered its issuer credit ratings and 9
CALIFORNIA-NEVADA SECTION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 8: Contingencies and Concentrations (Continued) related issue ratings on various Federal Home Loan Bank, Federal Farm Credit Bank, Fannie Mae and Freddie Mac to AA+ from AAA. The Section invests in LAIF which invests in various underlying securities, including the federal agency securities listed above. While LAIF is not rated, the federal agency securities are, and these have been affected by this rating change. Note 9: Related Party Transactions Certain current governing board members received fees for education instruction and reimbursements for a variety of expenses they provided on behalf of the Section. For the year ended December 31, 2011 the amount paid is $21,700 for education fees and $3,669 for reimbursed expenses. There is no outstanding amount due at December 31, 2011. 10
AMERICANT WATER WORKS ASSOCIATION STATEMENT OF ACTIVITIES SCHEDULES FOR THE YEARS ENDED SCHEDULE 1 - EVENTS & MARKETING 2011 2010 REVENUES Conferences $ 685,018 $ 790,617 Royalties 20,000 20,000 Contact Hours 14,720 18,580 Other Revenue 12,974 4,180 Advertising Revenue 595 320 TOTAL REVENUE 733,307 833,697 DIRECT PROGRAM SERVICE COSTS Facilities Expense 193,158 295,849 Salaries, Benefits & Related Costs 120,419 158,692 Office & Program Expenses 23,219 17,644 Marketing 19,407 20,692 Travel & Related Costs 17,035 27,740 Postage & Delivery 7,502 9,103 Insurance 5,675 5,597 Printing 4,263 4,898 Outside Services 2,352 13,196 Committees 424 8,965 Dues & Subscriptions 415 431 Education, Training & Development 120 897 Sponsorship - 1,059 Miscellaneous - 216 TOTAL DIRECT PROGRAM SERVICE COSTS 393,989 564,979 PROGRAM REVENUE LESS DIRECT PROGRAM SERVICE COSTS $ 339,318 $ 268,718 SCHEDULE 2 - CERTIFICATION REVENUE Certification $ 399,852 $ 449,196 Other Revenue - 279 TOTAL REVENUE 399,852 449,475 DIRECT PROGRAM SERVICE COSTS Salaries, Benefits & Related Costs 91,691 82,621 Outside Services 58,886 74,802 Postage & Delivery 8,549 7,217 Dues & Subscriptions 5,970 2,165 Travel & Related Costs 4,624 1,181 Office & Program Expenses 2,159 567 Printing 887 3,642 Facility Rental 555 - Miscellaneous 422 68 Equipment Repairs 383 719 Education, Training & Development 311 - Marketing 218 88 TOTAL DIRECT PROGRAM SERVICE COSTS 174,655 173,070 PROGRAM REVENUE LESS DIRECT PROGRAM SERVICE COSTS $ 225,197 $ 276,405 11
AMERICANT WATER WORKS ASSOCIATION STATEMENT OF ACTIVITIES SCHEDULES FOR THE YEARS ENDED SCHEDULE 3 - EDUCATION 2011 2010 REVENUES Workshops $ 293,525 $ 241,475 Courses 200,399 87,354 Book Sales 2,403 10,145 Other 630 - Event Sponsorship Revenue 500 1,290 Shipping and Freight 379 - Contact Hours 300 - TOTAL REVENUE 498,136 340,264 DIRECT PROGRAM SERVICE COSTS Outside Services 222,816 122,059 Salaries, Benefits & Related Costs 92,863 90,321 Travel & Related Costs 22,974 18,545 Book Purchases 11,363 23,004 Facilities Expenses 9,529 8,194 Office & Program Expenses 5,948 4,576 Dues & Subscriptions 1,355 905 Postage & Delivery 1,221 856 Education, Training & Development 1,079 - Equipment Rentals and Leases 1,000 2,810 Equipment Repairs & Maintenance 779 714 Printing 570 866 Miscellaneous 385 91 TOTAL DIRECT PROGRAM SERVICE COSTS 371,882 272,941 PROGRAM REVENUE LESS DIRECT PROGRAM SERVICE COSTS $ 126,254 $ 67,323 SCHEDULE 4 - GOVERNMENT AFFAIRS REVENUE Teleconferences $ - $ 14,990 Contract Hours - 1,260 TOTAL REVENUE - 16,250 DIRECT PROGRAM SERVICE COSTS Salaries, Benefits & Related Costs 6,302 9,626 Travel & Related Costs 2,939 2,932 Miscellaneous 1,053 183 Office & Program Expenses 500 - Facilities Expenses - 3,897 Grant Expenses - 500 Postage & Delivery - 284 Dues & Subscriptions - 265 Printing - 220 TOTAL DIRECT PROGRAM SERVICE COSTS 10,794 17,907 PROGRAM REVENUE LESS DIRECT PROGRAM SERVICE COSTS $ (10,794) $ (1,657) 12
AMERICANT WATER WORKS ASSOCIATION STATEMENT OF ACTIVITIES SCHEDULES FOR THE YEARS ENDED SCHEDULE 5 - COMMITTEE 2011 2010 REVENUES Water for People $ 61,567 $ 30,009 Event Sponsorship - 1,400 TOTAL REVENUE 61,567 31,409 DIRECT PROGRAM SERVICE COSTS Water for People 61,567 30,009 Committees 6,845 - Postage & Delivery 759 936 Facilities Expenses 713 - Meeting 500 - Printing - 396 Program - 60 TOTAL DIRECT PROGRAM SERVICE COSTS 70,384 31,401 PROGRAM REVENUE LESS DIRECT PROGRAM SERVICE COSTS $ (8,817) $ 8 13