Financial Statements for a Bar by ukp10564

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									LOS ANGELES COUNTY BAR
      FOUNDATION
   FINANCIAL STATEMENTS

  YEAR ENDED JUNE 30, 2009
          LOS ANGELES COUNTY BAR FOUNDATION

                        FINANCIAL STATEMENTS

                     YEAR ENDED JUNE 30, 2009




                                    CONTENTS

                                                                                 Page

Independent Auditors’ Report...................................................... 1


Statement of Financial Position ................................................... 2


Statement of Activities .............................................................. 3


Statement of Functional Expenses ............................................... 4


Statement of Cash Flows ........................................................... 5


Notes to Financial Statements..................................................... 6
                                   INDEPENDENT AUDITORS’ REPORT


To the Board of Directors
Los Angeles County Bar Foundation

We have audited the accompanying statement of financial position of the Los Angeles County Bar
Foundation (the Foundation) as of June 30, 2009, and the related statements of activities,
functional expenses and cash flows for the year then ended. These financial statements are the
responsibility of the Foundation’s management. Our responsibility is to express an opinion on these
financial statements based on our audit. The prior year summarized comparative information has
been derived from the Foundation’s 2008 financial statements and, in our report dated September
18, 2008, we expressed an unqualified opinion on those financial statements.

We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statements presentation.
We believe that our audit provides a reasonable basis of our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Foundation as of June 30, 2009, and the changes in its net assets and its
cash flows for the year ended, in conformity with accounting principles generally accepted in the
United States of America.



                                           Green Hasson & Janks LLP
September 23, 2009
Los Angeles, California




                                  An Independent Member of      HLB
                                                                HLB    International
                          A world-wide organization of accounting firms and business advisers

              10990 Wilshir e Boulev ar d | Six teenth F loor | Los Angeles, CA 90024-3929
                     TEL: (310) 873-1600 | FAX: (310) 873-6600 | www.ghjadvisors.com
                              LOS ANGELES COUNTY BAR FOUNDATION

                                STATEMENT OF FINANCIAL POSITION
                                          June 30, 2009
                               With Summarized Totals at June 30, 2008




                                                                  2009
                                                      Temporarily    Permanently                           2008
              ASSETS                  Unrestricted     Restricted      Restricted          Total           Total

Cash and Cash Equivalents             $    38,441    $             -   $          -   $      38,441   $      59,419
Investments                               133,317                  -       926,415        1,059,732       1,246,849
Pledges Receivable (Net)                         -           93,741               -          93,741         102,412

 TOTAL ASSETS                         $   171,758    $       93,741    $   926,415    $ 1,191,914     $ 1,408,680

     LIABILITY AND NET ASSETS

LIABILITY:
Due to Los Angeles County
  Bar Association                     $    18,934    $             -   $          -   $     18,934    $     15,668

NET ASSETS:
Undesignated                              (26,218)                 -              -        (26,218)        191,223
Quasi-Endowment Funds                     179,042                  -              -        179,042         179,042
Temporarily Restricted                           -           93,741               -         93,741         102,412
Permanently Restricted                           -                 -       926,415         926,415         920,335

 TOTAL NET ASSETS                         152,824            93,741        926,415        1,172,980       1,393,012

 TOTAL LIABILITY AND
  NET ASSETS                          $   171,758    $       93,741    $   926,415    $ 1,191,914     $ 1,408,680




                    The Accompanying Notes are an Integral Part of These Financial Statements

                                                       -2-
                                 LOS ANGELES COUNTY BAR FOUNDATION

                                    STATEMENT OF ACTIVITIES
                                     Year Ended June 30, 2009
                       With Summarized Totals for the Year Ended June 30, 2008




                                                                   2009
                                                       Temporarily    Permanently                             2008
                                        Unrestricted    Restricted      Restricted           Total            Total
REVENUE AND SUPPORT:
Contributions                          $    221,473    $       35,100    $     6,080    $     262,653    $    326,500
Investment Loss (Net)                      (191,291)                 -              -        (191,291)        (88,837)
In-Kind Contributions                        14,071                  -              -          14,071          14,115
Art Sale Income (Net)                         1,701                  -              -           1,701           6,554
Special Event Income (Net)                       -                   -              -                -          8,150
Net Assets Released from
  Program Restrictions                      43,771            (43,771)              -                -                -

 TOTAL REVENUE AND SUPPORT                  89,725             (8,671)         6,080          87,134          266,482

EXPENSES:
Program Services                           197,352                   -              -        197,352          311,239
Management and General                      63,039                   -              -         63,039           59,758
Fundraising                                 46,775                   -              -         46,775           42,747

 TOTAL EXPENSES                            307,166                   -              -        307,166          413,744

 CHANGE IN NET ASSETS                      (217,441)           (8,671)         6,080         (220,032)        (147,262)

Net Assets - Beginning of Year             370,265            102,412        920,335        1,393,012        1,540,274

 NET ASSETS - END OF YEAR              $   152,824     $       93,741    $   926,415    $ 1,172,980      $ 1,393,012




                     The Accompanying Notes are an Integral Part of These Financial Statements

                                                        -3-
                                 LOS ANGELES COUNTY BAR FOUNDATION

                                STATEMENT OF FUNCTIONAL EXPENSES
                                        Year Ended June 30, 2009
                         With Summarized Totals for the Year Ended June 30, 2008




                                                                    2009
                                             Program     Management                                       2008
                                             Services    and General    Fundraising         Total         Total

Salaries                                 $     10,021    $      26,720    $   30,060    $    66,801   $    62,465
Employee Benefits and
  Payroll Taxes                                  2,141           5,709         6,422         14,272        14,287

  TOTAL PERSONNEL COSTS                        12,162           32,429        36,482         81,073        76,752

Grants Expense                                183,795                 -             -       183,795       298,424
In-Kind Expense                                      -          14,071              -        14,071        14,115
Audit Fees                                           -          11,120              -        11,120        10,000
Outside Printing                                  394            1,182         6,306          7,882         6,041
Postage and Delivery                              243              730         1,460          2,433         2,003
Other Expenses                                       -           1,826              -         1,826         1,686
Bank Service Fees                                 269              716           806          1,791         1,851
In-House Duplication                              277              332           498          1,107           902
Insurance                                         164              438           493          1,095         1,085
General Office                                     48              195           730            973           885

  TOTAL 2009
   FUNCTIONAL EXPENSES                   $    197,352    $      63,039    $   46,775    $   307,166

  TOTAL 2008
   FUNCTIONAL EXPENSES                   $    311,239    $      59,758    $   42,747                  $   413,744




                       The Accompanying Notes are an Integral Part of These Financial Statements

                                                          -4-
                      LOS ANGELES COUNTY BAR FOUNDATION

                         STATEMENT OF CASH FLOWS
                           Year Ended June 30, 2009
             With Summarized Totals for the Year Ended June 30, 2008




                                                                      2009             2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in Net Assets                                              $ (220,032)     $ (147,262)
Adjustments to Reconcile Change in Net Assets to
 Net Cash Provided by (Used in) Operating Activities:
   Realized and Unrealized Loss on Investments                        218,014          123,366
   Donations Restricted for Long-Term Investment                       (6,080)          (9,205)
   Decrease in Pledges Receivable                                       8,671            6,588
   Increase (Decrease) in Due to Los Angeles
     County Bar Association                                              3,266           (3,118)

     NET CASH PROVIDED BY (USED IN)
      OPERATING ACTIVITIES                                               3,839          (29,631)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Investments                                               (205,230)        (239,856)
Proceeds from Sales of Investments                                     174,333          269,545

     NET CASH PROVIDED BY (USED IN)                                    (30,897)         29,689
      INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES:
Donations Restricted for Long-Term Investment                            6,080            9,205

     NET INCREASE (DECREASE) IN CASH
      AND CASH EQUIVALENTS                                             (20,978)           9,263

Cash and Cash Equivalents - Beginning of Year                          59,419           50,156

     CASH AND CASH EQUIVALENTS - END OF YEAR                      $    38,441     $     59,419




           The Accompanying Notes are an Integral Part of These Financial Statements

                                                -5-
                      LOS ANGELES COUNTY BAR FOUNDATION

                          NOTES TO FINANCIAL STATEMENTS
                                   June 30, 2009



NOTE 1 - ORGANIZATION AND BUSINESS PURPOSE

      The Los Angeles County Bar Foundation (the Foundation), a nonprofit organization, was
      established by and receives administrative services from the Los Angeles County Bar
      Association (the Association). The Foundation is principally funded by charitable
      contributions from members of the Los Angeles County legal community and other
      individuals, corporations and foundations interested in advancing the Foundation’s mission.

      At the request of the Foundation, the Association incorporates in the dues statements to its
      members a solicitation for a voluntary contribution (suggested amount of $35 per member)
      on behalf of the Foundation. The funds collected by the Association are remitted to the
      Foundation. The Foundation received $60,905 of dues-related contributions from the
      Association during the year ended June 30, 2009.

      The Mission of the Los Angeles County Bar Foundation is to improve the administration of
      justice and the delivery of legal services, to cultivate understanding of and respect for the
      rule of law, and to render assistance to the poor, the neglected, and the discriminated
      against. To that end, the Board of Directors is dedicated to ensuring that the organization
      fulfills its mission with the following objectives: 1) the financial health of the Foundation; 2)
      the prudent and proper management of the Foundation; and 3) the design and support of
      fundraising activities necessary to accomplish the Foundation's objectives.

      The Foundation distributes these funds in the form of grants to law-related charitable
      organizations including programs of the Los Angeles County Bar Association.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      A summary of the significant accounting policies applied in the preparation of the
      accompanying financial statements is as follows:

      (a)     BASIS OF ACCOUNTING

             The financial statements of the Foundation have been prepared on the accrual basis
             of accounting.

      (b)     ACCOUNTING

              To ensure observance of certain constraints and restrictions placed on the use of
              resources, the accounts of the Foundation are maintained in accordance with the
              principles of net assets accounting. This is the procedure by which resources for
              various purposes are classified for accounting and reporting purposes into net asset
              classes that are in accordance with specified activities or objectives. Accordingly,
              all financial transactions have been recorded and reported by net asset class as
              follows:

              •       Unrestricted. These generally result from revenues generated by receiving
                      unrestricted contributions, providing services, and receiving income from
                      investments less expenses incurred in providing program related services,
                      raising contributions, and performing administrative functions.



                                                -6-
                    LOS ANGELES COUNTY BAR FOUNDATION

                        NOTES TO FINANCIAL STATEMENTS
                                 June 30, 2009



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      (b)   ACCOUNTING (continued)

            •      Temporarily Restricted. The Foundation reports gifts of cash and other
                   assets 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 the
                   purpose of the restriction is accomplished, temporarily restricted net assets
                   are reclassified to unrestricted net assets and reported in the statement of
                   activities as net assets released from program restrictions. At June 30,
                   2009, the Foundation has $93,741 of temporarily restricted net assets,
                   which consist of pledges receivable.

            •      Permanently Restricted. These net assets are received from donors who
                   stipulate that resources are to be maintained permanently, but permit the
                   Foundation to expend all of the income (or other economic benefits) derived
                   from the donated assets. At June 30, 2009, the Foundation has $926,415
                   of permanently restricted net assets, which consist of endowment funds.

      (c)   CASH AND CASH EQUIVALENTS

            The Foundation has defined cash and cash equivalents as cash in banks and other
            financial instruments with an original maturity of three months or less. The carrying
            value of cash and cash equivalents at June 30, 2009 approximates its fair value.

            The Foundation maintains its cash and cash equivalents in bank deposit accounts
            and other investment accounts which, at times may exceed federally insured limits.
            The Foundation has not experienced any losses in such accounts and believes it is
            not exposed to any significant credit risk on cash and cash equivalents.

      (d)   INVESTMENTS

            Investments in equity and debt securities with readily determinable market values are
            reported at fair value. The fair value of investments is valued at the closing price on
            the last business day of the fiscal year. Securities are generally held in custodial
            investment accounts administered by financial institutions.

            Investment purchases and sales are accounted for on a trade-date basis. Interest
            and dividend income is recorded when earned. Gains or losses (including
            investments bought, sold, and held during the year), and interest and dividend
            income are reflected in the statement of activities as increases or decreases in
            unrestricted net assets unless their use is temporarily restricted by donor stipulations
            or by law.




                                              -7-
                    LOS ANGELES COUNTY BAR FOUNDATION

                        NOTES TO FINANCIAL STATEMENTS
                                 June 30, 2009



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      (d)   INVESTMENTS (continued)

            Investment securities, in general, are exposed to various risks, such as interest rate,
            credit, and overall market volatility. Due to the level of risk associated with certain
            long-term investments, it is reasonably possible that changes in the values of these
            investments will occur in the near term and that such changes could materially
            affect the amounts reported in the statement of financial position.

      (e)   CONTRIBUTIONS AND PLEDGES RECEIVABLE

            Unconditional contributions, including pledges recorded at estimated net realizable
            value, are recognized as revenues in the period received. The Foundation reports
            unconditional contributions as 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 of the restriction
            is accomplished, temporarily restricted net assets are reclassified to unrestricted net
            assets and reported in the statement of activities as net assets released from
            program or capital restrictions.

            At June 30, 2009, the Foundation evaluated the collectibility of pledges receivable.
            An allowance of $500 for uncollectible pledges receivable was deemed necessary
            based on historical collection rates.

      (f)   DONATED SERVICES

            Contributions of donated non-cash assets are recorded at fair value in the period
            received. Contributions of donated services that create or enhance non-financial
            assets or that require specialized skills, are provided by individuals possessing those
            skills, and would typically need to be purchased if not provided by donation, are
            recorded at fair value in the period received.

            The Foundation recorded total unrestricted contributions of $14,071 for donated
            administration services from the Association for the year ended June 30, 2009.

      (g)   INCOME TAXES

            The Foundation is exempt from taxation under Internal Revenue Code Section
            501(c)(3) and California Revenue and Taxation Code Section 23701d.

      (h)   GRANTS

            Unconditional grants are charged against operations when authorized by the
            Foundation's Board of Directors. The actual payment of the grant may not
            necessarily occur in the year of authorization. Cancellations of grants occur when
            the grantees do not meet the terms under which the grants were awarded.




                                              -8-
                    LOS ANGELES COUNTY BAR FOUNDATION

                        NOTES TO FINANCIAL STATEMENTS
                                 June 30, 2009



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      (i)   RECENT ACCOUNTING PRONOUNCEMENT

            In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
            Interpretation No. 48 (FIN 48), “Accounting for Uncertainty in Income Taxes - An
            Interpretation of FASB Statement 109.” FIN 48 clarifies the accounting for
            uncertainty in income taxes recognized in an enterprise’s financial statements in
            accordance with FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48
            prescribes a comprehensive model for recognizing, measuring, presenting and
            disclosing in the financial statements tax positions taken, or expected to be taken,
            on a tax return. FIN 48 was initially effective for fiscal years beginning after
            December 15, 2006. The implementation date for non-public corporations for FIN
            48 has been delayed and is now effective for fiscal years beginning after December
            15, 2008. The Foundation expects to adopt the requirements, if necessary, on July
            1, 2009 and has not currently determined the impact of FIN 48 on the
            accompanying financial statements.        However, until FIN 48 is adopted, the
            Foundation will continue to account for uncertain tax positions using the guidance in
            FASB Statement 5, “Accounting for Contingencies.” The cumulative effect, if any,
            of adopting FIN 48 will be recorded as an adjustment to net assets on July 1, 2009.

      (j)   FUNCTIONAL ALLOCATION OF EXPENSES

            The costs of providing the Foundation’s programs and other activities have been
            presented in the statement of functional expenses. During the year, such costs are
            accumulated into separate groupings as either direct or indirect. Indirect or shared
            costs are allocated among program and support services by a method that best
            measures the relative degree of benefit. The Foundation uses direct salary dollars to
            allocate indirect costs.

      (k)   MANAGEMENT'S 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 reported amounts of assets, liabilities,
            revenues and expenses as of the date and for the period presented. Actual results
            could differ from those estimates.

      (l)   COMPARATIVE TOTALS

            The 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 the Foundation’s financial statements for the year
            ended June 30, 2008, from which the summarized information was derived.




                                              -9-
                      LOS ANGELES COUNTY BAR FOUNDATION

                          NOTES TO FINANCIAL STATEMENTS
                                   June 30, 2009



NOTE 3 - INVESTMENTS

      Effective July 1, 2008, the Foundation implemented Statement of Financial Accounting
      Standards No. 157, “Fair Value Measurements,” (SFAS 157) for those assets (and liabilities)
      that are re-measured and reported at fair value at each reporting period. This standard
      establishes a single authoritative definition of fair value, sets out a framework for measuring
      fair value based on inputs used, and requires additional disclosures about fair value
      measurements. SFAS 157 applies to fair value measurements already required or permitted
      by existing standards.

      In general, fair values determined by Level 1 inputs utilize quoted prices in active markets for
      identical assets. Fair values determined by Level 2 inputs utilize data points that are
      observable such as quoted prices, interest rates and yield curves. Fair values determined by
      Level 3 inputs are unobservable data points for the asset and include situations where there
      is little, if any, market activity for the asset.

      The following table presents information about the Foundation’s assets that are measured at
      fair value on a recurring basis at June 30, 2009 and indicates the fair value hierarchy of the
      valuation techniques utilized to determine such fair value:

                                                         Fair Value Measurements Using
                                                         Quoted Prices
                                                           in Active       Significant
                                                          Markets for         Other       Significant
                                            Year Ended      Identical      Observable    Unobservable
                                             June 30,        Assets          Inputs         Inputs
                                              2009          (Level 1)       (Level 2)      (Level 3)

      Stocks                            $     526,342    $   526,342    $           -    $          -
      Bonds                                   511,431        511,431                -               -
      Money Market                             21,959         21,959                -               -

       TOTAL INVESTMENTS                $ 1,059,732      $ 1,059,732    $           -    $          -

      The fair values of stocks, bonds and marketable securities within Level 1 inputs were
      obtained based on quoted market prices at the closing of the last business day of the fiscal
      year.

      Net investment loss consists of the following for the year ended June 30, 2009:

                  Dividends and Interest                          $      33,556
                  Unrealized Losses                                    (136,468)
                  Realized Losses                                       (81,546)
                  Investment Management Fees                             (6,833)

                     INVESTMENT LOSS (NET)                        $    (191,291)




                                                 -10-
                     LOS ANGELES COUNTY BAR FOUNDATION

                           NOTES TO FINANCIAL STATEMENTS
                                    June 30, 2009



NOTE 4 - PLEDGES RECEIVABLE

      Pledges receivable consists of the following pledge programs at June 30, 2009:

                 Honor Roll Programs                           $      54,860
                 Fellows Programs                                     43,575
                 Other Pledges Receivable                                200
                   GROSS PLEDGES RECEIVABLE                    $      98,635

      Pledges receivable are recorded as revenue when pledged. Additionally, all pledges are
      valued at their estimated fair value at June 30, 2009. Pledges receivable are expected to be
      collected as follows:

                 Year Ending June 30
                           2010                                $      35,860
                           2011                                       25,885
                           2012                                       18,490
                           2013                                       10,920
                           Thereafter                                  7,480
                   GROSS PLEDGES RECEIVABLE                           98,635
                 Less: Allowance for Uncollectible Amounts              (500)
                 Less: Discount on Present Value -
                  Interest Rate of 4%                                 (4,394)
                   PLEDGES RECEIVABLE (NET)                    $      93,741


NOTE 5 - DUE TO LOS ANGELES COUNTY BAR ASSOCIATION

      The Association pays operating expenses of the Foundation as they are incurred, and the
      Foundation reimburses the Association for those expenses. At June 30, 2009, the
      Foundation owes the Association $18,934 for these operating expenses.


NOTE 6 - QUASI-ENDOWMENT FUNDS

      The Board of Directors has established two funds whereby the principal will be retained and
      the future investment income earned is available for use. In the accompanying financial
      statements, the two funds have been combined and reported as quasi-endowment funds.
      The following summarizes the components of the quasi-endowment funds of unrestricted
      net assets at June 30, 2009:

                 General                                        $   153,500
                 Stockel                                             25,542
                   TOTAL QUASI-ENDOWMENT FUNDS                  $   179,042




                                              -11-
                      LOS ANGELES COUNTY BAR FOUNDATION

                          NOTES TO FINANCIAL STATEMENTS
                                   June 30, 2009



NOTE 6 - QUASI-ENDOWMENT FUNDS (continued)

      Investment income earned on the Stockel quasi-endowment fund is used to provide funding
      for the Harriett Buhai Center for Family Law.


NOTE 7 - TEMPORARILY RESTRICTED NET ASSETS

      Temporarily restricted net assets consist of pledges receivable time restricted to be received
      in future periods.


NOTE 8 - PERMANENTLY RESTRICTED NET ASSETS

      Based on donor restrictions, the Foundation maintains endowment funds, whereby the
      principal is retained and the investment income earned is used for current operations. In the
      accompanying financial statements, the endowment funds have been combined and reported
      as permanently restricted net assets. The following summarizes the components of the
      permanently restricted net assets at June 30, 2009:

                  General Endowment                              $    768,970
                  Charles English                                      57,850
                  Donald Baker                                         38,680
                  Roy Aaron                                            19,700
                  John Brinsley                                        11,700
                  Joseph Ball Memorial                                 10,400
                  Joseph Taback                                        10,305
                  Vincent Townsend                                      4,350
                  R. Gerald Markle                                      3,160
                  Roderick W. Leonard                                   1,300
                    TOTAL ENDOWMENT FUNDS                        $    926,415


NOTE 9 - ENDOWMENTS

      The Foundation's endowments consist of funds established for a variety of purposes.
      Endowment funds are established by donor-restricted gifts to provide a permanent
      endowment, which is to provide a permanent source of income to the Foundation.

      The Foundation’s management understands California State law as (1) requiring the
      preservation of the fair market value of the original gifts as of the gift date of the donor
      restricted endowment funds, and (2) allowing the spending of income and gains on
      permanently restricted endowments, absent explicit donor stipulations that all or a portion of
      such gains be maintained in perpetuity.

      The primary long-term financial objective for the Foundation’s endowments is to preserve
      the real (inflation-adjusted) purchasing power of endowment assets and income after
      accounting for endowment spending, annual growth percentage and costs of portfolio
      management.


                                              -12-
                       LOS ANGELES COUNTY BAR FOUNDATION

                           NOTES TO FINANCIAL STATEMENTS
                                    June 30, 2009



NOTE 9 - ENDOWMENTS (continued)

      The Foundation’s Board of Director’s is in the process of developing a spending policy that
      will distribute a specific payout rate of the endowment base to support the Foundation’s
      programs. The endowment base will be defined as a three-year moving average of the
      market value of the total endowment portfolio (calculated as of the last day of June for the
      prior three years). The distribution or payout rate will be calculated at a specific fixed
      percentage of the base. Such a policy will allow for a greater predictability of spendable
      income for budgeting purposes and for gradual steady growth for the support of operations
      by the endowment. In addition, this policy will minimize the probability of invading the
      principal over the long term.

      At times, the fair value of assets associated with these endowment funds may fall below
      the level that the donor requires the Foundation to retain as a fund of perpetual duration.
      Deficiencies may result from unfavorable market fluctuations. In accordance with generally
      accepted accounting principles, deficiencies of this nature that are reported in unrestricted
      net assets were $135,763 at June 30, 2009.

      Endowment Net Asset
      Composition by Type of Fund                        Temporarily       Permanently
      at June 30, 2009                   Unrestricted     Restricted        Restricted       Total

      Donor-Restricted                   $   (135,763)   $             -   $   926,415   $   790,652
      Quasi-Endowment Funds                   152,804                  -             -       152,804

      TOTAL FUNDS                        $    17,041     $             -   $   926,415   $   943,456
      Changes in Endowment Net Assets
      for the Year Ended                                 Temporarily       Permanently
      June 30, 2009                      Unrestricted     Restricted        Restricted       Total

      Endowment Net Assets -
        Beginning of Year                $   179,042     $             -   $   920,335   $ 1,099,377
      Contributions                                -                   -         6,080         6,080
      Investment Return:
        Investment Income                      27,996                  -             -         27,996
        Realized and Unrealized Losses       (184,223)                 -             -       (184,223)
        Investment Fees                        (5,774)                 -             -         (5,774)

       ENDOWMENT NET ASSETS -
        END OF YEAR                      $    17,041     $             -   $   926,415   $   943,456




                                               -13-
                      LOS ANGELES COUNTY BAR FOUNDATION

                         NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2009



NOTE 10 - CONTRIBUTION REVENUE

      Contributions were received from the following sources for the year ended June 30, 2009:

                  Law Firms                                     $       107,410
                  Individuals                                            86,621
                  Dues-Related Contributions                             60,905
                  Other                                                   4,231
                  Corporations                                            3,486
                    TOTAL CONTRIBUTION REVENUE                  $       262,653

      Unconditional promises to give (pledges) are recorded as receivables and contribution income
      when the pledge is made. Accordingly, contributions collected in cash from individuals differ
      from the amount recorded in the statement of activities of the Foundation. Actual
      contributions collected by the Foundation from individual donors amounted to $93,716 for
      the year ended June 30, 2009.


NOTE 11 - GRANTS EXPENSE

      The Board of Directors authorized grants for the following programs during the year ended
      June 30, 2009:

               Los Angeles County Bar Association Programs          $     137,545
               Harriett Buhai Center for Family Law                         7,805
               Mental Health Advocacy Services, Inc.                        6,100
               Levitt & Quinn Family Law Center, Inc.                       5,100
               Disability Rights Legal Center- Pro Bono Program             3,645
               Jenesse Center, Inc. - Legal Services Program                3,600
               Central American Resource Center -
                 Legal Services Project                                     2,000
               Inner City Law Center                                        2,000
               L.A. Gay & Lesbian Center - Legal
                 Services Department                                        2,000
               El Rescate Legal Services                                    1,500
               Sunday Free Legal Clinic                                     1,500
               1736 Family Crisis Center - Legal Services Project           1,000
               Catholic Charities of Los Angeles -
                 Esperanza Immigrant Rights                                 1,000
               Centinela Youth Services - Victim Offender
                 Restitution Service                                        1,000
               Christian Legal Aid of Los Angeles                           1,000




                                               -14-
                     LOS ANGELES COUNTY BAR FOUNDATION

                         NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2009



NOTE 11 - GRANTS EXPENSE (continued)

              Coalition to Abolish Slavery & Trafficking                 1,000
              Healthcare & Elder Law Programs Corp. -
                Better Endings Project                                   1,000
              International Rescue Committee                             1,000
              Long Beach Bar Foundation - SHORTSTOP
                Program                                                  1,000
              Los Angeles Center for Law & Justice -
                Housing Unit                                             1,000
              Loyola Law School - Center for Juvenile
                Law and Policy                                           1,000
              My Friend’s Place - Legal Services Program                 1,000

                TOTAL GRANTS EXPENSE                              $    183,795

      Grants authorized to projects operated by the Los Angeles County Bar Association consist of
      the following for the year ended June, 30, 2009:

               Dispute Resolution Services, Inc.
                School Peer Mediation and Conflict
                  Resolution Program                             $     38,700
               Los Angeles County Bar Association
                Projects, Inc. -
                  Domestic Violence Project                            40,779
                  Immigration Legal Assistance Project                 36,133
                  Barristers AIDS Legal Services Project               21,933

                                                                 $    137,545




                                              -15-

								
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