Consolidated_NBLSA_Financial_Statements_For_Period_Ended_103110v3 by National Black

Consolidated NBLSA Financial Reporting For the Period Ended October 31, 2010

Lewis & Darby, PLLC Redefining the Accounting Experience

Table of Contents Letter to Stakeholders............................................................................................................................................................................... 3 Consolidated Summary Statement of Operations1 ........................................................................................................................ 4 Consolidated Detailed Statement of Operations1 .......................................................................................................................... 5 Consolidated Statement of Activities .................................................................................................................................................. 7 Consolidated Summary Statement of Financial Position2 ......................................................................................................... 9 Consolidated Detailed Statement of Financial Position ........................................................................................................... 10 Consolidated Statement of Cash Flows .......................................................................................................................................... 11 Notes to the Financial Statements .................................................................................................................................................... 12 Discussion and Analysis ........................................................................................................................................................................ 16

Letter to Stakeholders To Whom This May Concern: This report includes the Consolidated Statement of Operations for the periods ended October 31, 2010 and 2009, the Consolidated Statement of Activities for the periods ended October 31, 2010 and 2009, the Consolidated Balance Sheet as of October 31, 2010 and May 31, 2010, and the footnotes underlying those financial statements for the National Black Law Student Association, Inc (“NBLSA” or “Organization”). Lewis & Darby, PLLC has prepared this document solely for the internal use of the executive board. The information contained in this document was derived from a combination of historical transactions and management estimates in efforts to reconstruct the financial presentation of a previous fiscal period for which data gaps exist and cannot be remediated. These financial statements have not been audited, and may be modified and/or amended for any reason whatsoever. The information in this document is confidential and proprietary to the Organization and is being given to you solely for your confidential use and with the explicit understanding that, without the prior written permission of the Organization, you will not release this document or discuss this document, its existence, or any of the information contained herein, or make any reproduction of or use this document for any purpose. Your acceptance of this document constitutes your agreement to be bound by the foregoing. This document is the property of the Organization and must be returned to Melinda Hightower, Chair of the NBLSA, upon request.

Lewis & Darby, PLLC

Consolidated Summary Statement of Operations1 For the period ended October 31, 2010 National Black Law Student Association

October 31, 2010 Income Contributions Revenue from direct contributors Donated goods & services revenue Revenue from program-related sales & fees Revenues from dues Revenue from investments Revenue from other sources Special events Total Income Expenses Grant & contract expense Contract Service Expenses Non-personnel expenses Facility & equipment expenses Travel & meetings expenses Misc expenses Business expenses Donations Total Expenses Net Operating Income Net Income

October 31, 2009

$ Change

% Change

$ 38,631 5,000 108,613 1,738 12 2,680 2,400 159,074 $

7,002 $ 105,265 35,550 155,160 1 44,205 6,343 353,526 $

(7,002) (66,634) 5,000 73,063 (153,422) 11 (41,525) (3,943) (194,452)

-100% -63% n/a 206% -99% 1500% -94% -62% -55%

$ $ $

1,250 22,134 15,177 10 136,742 1,884 7,266 5,000 189,463 $ (30,389) $ (30,389) $

11,993 13,413 93,093 42,860 161,359 $ 192,166 $ 192,166 $

1,250 10,141 1,764 10 43,649 (40,976) 7,266 5,000 28,104 (222,556) (222,556)

n/a 85% 13% n/a 47% -96% n/a n/a 17% -116% -116%

For purposes of reconstructing the Statement of Operations for the period ended October 31, 2009, Lewis & Darby, PLLC relied heavily on budgetary information and bank statements provided by the NBLSA as there were several gaps in historical financial data that could not be obtained at that point in time. Careful consideration should be given before relying heavily on the financial statement reported herein as of October 31, 2009. 1

Consolidated Detailed Statement of Operations1 For the period ended October 31, 2010 National Black Law Student Association October 31, 2010 Income Contributions Revenue from direct contributors Indiv/business contribution Corporate contributions Academic and professional development Conferences/Convention Job Fair Total Academic and professional development Total Corporate contributions Total Revenue from direct contributors Donated goods & services revenue Gifts in kind - goods Total Donated goods & services revenue Revenue from program-related sales & fees Academic and professional development (ER) Conventions/Conferences Job fairs Academic Retreats Total Academic and professional development (ER) Competitions Frederick Douglass Moot Court Competition Thurgood Marshall Mock Trial Competition Total Competitions Total Revenue from program-related sales & fees Revenues from dues Membership dues - individuals Assessments & dues - orgs Total Revenues from dues Revenue from investments Interest-savings/short-term inv Total Revenue from investments Revenue from other sources Miscellaneous revenue Total Revenue from other sources Special events Total Income Expenses Grant & contract expense Scholarships - program-related Academic and Professional Development Individual recognition Total Scholarships - program-related Total Grant & contract expense Contract Service Expenses Accounting fees Professional fees - other Academic and professional development Conference/Conventions Job Fairs Total Academic and professional development Total Professional fees - other Total Contract Service Expenses

October 31, 2009

850

$ $ $

32,681 5,100 37,781 $ 37,781 $ 38,631 $

$ Change

1,167

(1,167)

-100%

250

600

240%

(105,015) 32,681 5,100 (68,401) (68,401) (67,801)

-100% n/a n/a -$0.64 -$0.64 -$0.64

5,000 5,000

n/a n/a

(10,335) 16,450 91,175 988 98,278 (21,355) (3,860) (25,215) 73,063 (153,692) (5,565) (159,257) 11 11 (41,525) (41,525) (3,943) (194,452)

-100% n/a n/a n/a 951%

105,015 106,182 $ 106,182 $ 106,432 $

5,000 5,000

16,450 91,175 988 108,613 $

10,335 10,335 $

- $ 108,613 $

21,355 3,860 25,215 $ 35,550 $

1,468 270 1,738 $

155,160 5,835 160,995 $

12 12

$ $

- $

1 1 $

2,680 2,680 $ 2,400 159,074 $

44,205 44,205 $ 6,343 353,526 $

$ $

250 1,000 1,250 1,250

$ $ $

% Change

$ $

- $ - $

250 1,000 1,250 1,250

3,028 12,224 300 6,449 133 6,882 $ 19,106 $ 22,134 $

11,993 - $ 11,993 $ 11,993 $

3,028 231 300 6,449 133 6,882 7,113 10,141

-100% -100% -100% 206% -99% -95% -99% 1500% 1500% -94% -94% -62% -55%

n/a n/a n/a n/a n/a 2% n/a n/a n/a n/a 59% 85%

October 31, 2010 Non-personnel expenses Advertising and promotion Academic and professional development Total Advertising and promotion Office Expenses Information Technology Supplies Academic and professional development Total Supplies Donated materials & supplies Telephone & Telecommunications Postage, shipping, delivery Mailing services Equip rental & maintenance Printing & copying Academic and professional development Total Printing & copying Books, subscriptions, reference Total Non-personnel expenses Facility & equipment expenses Rent, parking, other occupancy Total Facility & equipment expenses Travel & meetings expenses Travel Academic and professional development Conventions/Conferences Total Academic and professional development Advocacy opportunities Total Travel Conference,convention,meeting Academic and professional development Conference/Convention Job Fairs Academic Retreats Alumni Networking Events Total Academic and professional development Total Conference,convention,meeting Travel Meals Total Travel & meetings expenses Misc expenses Insurance - non-employee Membership dues - organization Outside computer services Advertising expenses Other expenses Total Misc expenses Business expenses Fines, penalties, judgements Organizational (corp) expenses BOD Meetings National BOD Meetings Regional BOD Meetings Total BOD Meetings Total Organizational (corp) expenses Total Business expenses Donations Total Expenses Net Operating Income Net Income

October 31, 2009

2,413

1,307

1,106

85%

694

145

549

378%

1,654

114%

3,106

1,452

1,271

n/a

497

830%

127

1,834

(1,707)

-93%

904

1,030

1,834 $

904

n/a

(804)

-44% 590%

4,138

600

3,538

515

7,596

(7,082)

-93%

1,358

226

1,133

502%

129

376

(247)

-66%

(69)

-100%

381

(336)

-88%

2,954

n/a

2,618

687%

(765)

-95%

1,764

13%

n/a

- $

45 $

3,000

15,177

381

13,413

803

1,062

(1,062)

-100%

143

4,807

(4,664)

-97%

359

262

37%

2,213 $

2,572

5,079

2,364

262

5,069 $

2,213

n/a

2,310

882%

2,364

n/a

1,787

6,355

(4,568)

-72%

12,309

(12,237)

-99%

18,257

52,310

(34,053)

-65%

76,150

17,716

13,466

17,459

129,654

78,085

131,441

84,440

222 136,742

2,522 $

93,093

4,810

425

127%

556

2,954

% Change

1,271

$ Change

76,150

n/a

4,249

32%

17,459

n/a

51,568

66%

47,001

56%

(2,300)

-91%

43,649

47%

(4,787)

-100%

418

5722%

9,715

(9,715)

-100%

(4)

-100%

125

(75)

-60%

1,386

28,199

(26,813)

-95%

42,860 $

(40,976)

-96%

1,884

500

n/a

5,987

n/a

202

n/a

526

n/a

6,714

n/a

6,741

n/a

7,266

n/a

5,000 $

5,000

n/a

28,104

17%

189,463

161,359

(30,389)

192,166 $

(222,556)

-116%

(30,389)

192,166 $

(222,556)

-116%

Consolidated Statement of Activities For the period ended October 31, 2010 National Black Law Student Association October 31, 2010 Academic and Professional Individual Development Recognition

General Administration Income Contributions Revenue from direct contributors Indiv/business contribution Corporate contributions Academic and professional development Conferences/Convention Job Fair Total Academic and professional development Total Corporate contributions Total Revenue from direct contributors Donated goods & services revenue Gifts in kind - goods Total Donated goods & services revenue Revenue from program-related sales & fees Academic and professional development (ER) Conventions/Conferences Job fairs Academic Retreats Total Academic and professional development (ER) Competitions Frederick Douglass Moot Court Competition Thurgood Marshall Mock Trial Competition Total Competitions Total Revenue from program-related sales & fees Revenues from dues Membership dues - individuals Assessments & dues - orgs Total Revenues from dues Revenue from investments Interest-savings/short-term inv Total Revenue from investments Revenue from other sources Miscellaneous revenue Total Revenue from other sources Special events Total Income Expenses Grant & contract expense Scholarships - program-related Academic and Professional Development Individual recognition Total Scholarships - program-related Total Grant & contract expense Contract Service Expenses Accounting fees Professional fees - other Academic and professional development Conference/Conventions Job Fairs Total Academic and professional development Total Professional fees - other Total Contract Service Expenses Non-personnel expenses Advertising and promotion Academic and professional development Total Advertising and promotion Office Expenses Information Technology Supplies Academic and professional development Total Supplies

$ $ $

850

32,681 5,100 37,781 37,781 37,781

$ $ $

5,000 5,000

12 12

$ $

$ $ $

2,680 2,680 2,400 12,679

3,028 12,224 12,224 15,252 35 2,413 2,413 1,271 556 127 127

16,450 91,175 988 108,613

146,394

$ $

250 250 250

$ 108,613

1,468 270 1,738

12 12

16,450 91,175 988 $ 108,613

300 6,449 133 6,882 6,882 6,882 694 694 904 904

2,680 2,680 2,400 $ 159,074

1,000 1,000 1,000

250 1,000 1,250 1,250

$ $

$ $ $

5,000 5,000

108,613

32,681 5,100 37,781 37,781 38,631

$ $ $

- $ - $ - $

850

1,468 270 1,738

$ $ $

Total

$ $

3,028 12,224 300 6,449 133 $ 6,882 $ 19,106 $ 22,134 35 2,413 694 $ 3,106 1,271 556 127 904 $ 1,030

Donated materials & supplies Telephone & Telecommunications Postage, shipping, delivery Mailing services Equip rental & maintenance Printing & copying Academic and professional development Total Printing & copying Books, subscriptions, reference Total Non-personnel expenses Facility & equipment expenses Rent, parking, other occupancy Total Facility & equipment expenses Travel & meetings expenses Travel Academic and professional development Conventions/Conferences Total Academic and professional development Advocacy opportunities Total Travel Conference,convention,meeting Academic and professional development Conference/Convention Job Fairs Academic Retreats Alumni Networking Events Total Academic and professional development Total Conference,convention,meeting Travel Meals Total Travel & meetings expenses Misc expenses Insurance - non-employee Membership dues - organization Outside computer services Advertising expenses Other expenses Total Misc expenses Business expenses Fines, penalties, judgements Organizational (corp) expenses BOD Meetings National BOD Meetings Regional BOD Meetings Total BOD Meetings Total Organizational (corp) expenses Total Business expenses Donations Total Expenses Net Operating Income Net Income

General Administration 4,138 515 1,358 129 45 $ 45 38 $ 10,625

$ $

$ $ $

$ $

$ $ $

10 10 143 2,364 2,507 1,787 1,787 222 4,517 23 425 50 1,386 1,884 500 25 27 5,987 202 526 6,714 6,741 7,266 5,000 44,554 (31,875) (31,875)

October 31, 2010 Academic and Professional Individual Development Recognition Total 4,138 515 1,358 129 45 2,954 2,954 $ 2,954 $ - $ 3,000 38 $ 4,552 $ - $ 15,177 10 $ - $ - $ 10

$ $

$ $ $

$ $

$ $ $

359 2,213 2,572 $ 2,572 $ 73 18,257 76,150 17,716 17,459 129,654 $ 129,654 $ 132,226 $ - $ - $ 143,909 $ 2,485 $ 2,485 $

- $ - $ - $ - $ - $ - $ - $ 1,000 $ (1,000) $ (1,000) $

143 359 2,213 2,572 2,364 5,079 1,787 73 18,257 76,150 17,716 17,459 129,654 131,441 222 136,742 23 425 50 1,386 1,884 500 25 27 5,987 202 526 6,714 6,741 7,266 5,000 189,463 (30,389) (30,389)

Consolidated Summary Statement of Financial Position2 For the Period Ended October 31, 2010 National Black Law Student Association As of Oct 31, 2010 ASSETS Current Assets Bank Accounts National - Cash on Hand Mid-Atlantic - Cash on Hand Mid-West - Cash on Hand Southern Region - Cash on Hand Western - Cash on Hand Rocky Mountain - Cash on Hand Northeast - Cash on Hand Total Bank Accounts Total Current Assets TOTAL ASSETS LIABILITIES AND EQUITY Total Liabilities Equity Opening Balance Equity Unrestricted (Retained Earnings) Temporarily restricted net asset Net Income Total Equity TOTAL LIABILITIES AND EQUITY

$ $

As of May 31, 2010

31,531 6,273 25,413 11,619 16,607 9,974 70,907 172,324 172,324.21 172,324.21

4,200 198,014 500 (30,389) 172,324 172,324

$ $

45,126 27,856 28,871 10,587 11,757 6,673 71,343 202,214 202,213.62 202,213.62

$ $

4,200 182,577 15,437 202,214 202,214

2 For purposes of reconstructing the Functional Operating Statements for the period ended May 31, 2010, Lewis & Darby, PLLC relied heavily on budgetary information and bank statements provided by the NBLSA as there were several gaps in historical financial data that could not be obtained at that point in time. Careful consideration should be given before relying heavily on the financial statement reported herein for the period ended May 31, 2010.

Consolidated Detailed Statement of Financial Position For the period ended October 31, 2010 National Black Law Student Association As of Oct 31, 2010 ASSETS Current Assets Bank Accounts Cash in bank - operating National - Cash on Hand National BOA National BOA #2156 National BOA #9473 Total National - Cash on Hand Mid-Atlantic - Cash on Hand Mid-Atlantic BOA Total 1051-00 Mid-Atlantic - Cash on Hand Mid-West - Cash on Hand Mid-West BOA Total Mid-West - Cash on Hand Southern Region - Cash on Hand South BOA South Wachovia/Wells Fargo Total Southern Region - Cash on Hand Western - Cash on Hand Western BOA Checking Western BOA Savings Total Western - Cash on Hand Rocky Mountain - Cash on Hand Rocky Mountain BOA Checking Total Rocky Mountain - Cash on Hand Northeast - Cash on Hand Northeast BOA Northeast BOA Savings Total 1056-00 Northeast - Cash on Hand Total Bank Accounts Total Current Assets TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Total Liabilities Equity Opening Balance Equity Unrestricted (Retained Earnings) Temporarily restricted net asset Specific-use restricted net assets Total Temporarily restricted net asset Net Income Total Equity TOTAL LIABILITIES AND EQUITY

As of May 31, 2010

470 31,061 31,531

810 44,316 45,126

6,273 6,273

27,856 27,856

25,413 25,413

28,871 28,871

11,619 11,619

10,587 10,587

16,104 503 16,607

11,255 503 11,757

9,974 9,974

6,673 6,673

$ $ $ $

50,035 20,872 70,907 172,324 172,324 172,324

$ $ $ $

50,481 20,862 71,343 202,214 202,214 202,214

4,200 198,014

$ $ $

500 500 (30,389) 172,324 172,324

4,200 182,577

$ $ $

15,437 202,214 202,214

For purposes of reconstructing the Balance Sheet for the period ended May 31, 2010, Lewis & Darby, PLLC relied heavily on budgetary information and bank statements provided by the NBLSA as there were several gaps in historical financial data that could not be obtained at that point in time. Careful consideration should be given before relying heavily on the financial statement reported herein as of May 31, 2010. 3

Consolidated Statement of Cash Flows For the Period Ended October 31, 2010 National Black Law Student Association October 31, 2010 OPERATING ACTIVITIES Net Income Adjustments to reconcile Net Income to Net Cash provided by operations: Net cash provided by operating activities FINANCING ACTIVITIES Temporarily restricted net asset:Specific-use restricted net assets Net cash provided by financing activities Net cash increase for period Cash at beginning of period Cash at end of period

October 31, 2009

(30,389) $

$ $ $

(30,389) 500 500 (29,889) 202,214 172,324

192,166 $

$ $ $

192,166 192,166 186,777 378,943

2 For purposes of reconstructing the Statement of Cash Flows for the period ended October 31, 2009, Lewis & Darby, PLLC relied heavily on budgetary information and bank statements provided by the NBLSA as there were several gaps in historical financial data that could not be obtained at that point in time. Careful consideration should be given before relying heavily on the financial statement reported herein for the period ended October 31, 2009.

Notes to the Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements are prepared on the accrual basis of accounting whereby revenue is recognized when earned and expenses are recognized when incurred. Basis of Presentation The financial statement presentation follows the recommendations of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for not-for-profit accounting, NBLSA 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. There were no permanently restricted net assets at October 31, 2010. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts of our cash and cash equivalents approximate fair value due to the shortterm nature of these instruments. Financial Risk NBLSA maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. NBLSA has not experienced any losses on such accounts and believes it is not exposed to any significant financial risk on cash. Revenue Recognition Contributions received are recorded as permanently restricted, temporarily restricted, or unrestricted revenue, depending on the existence and/or nature of any donor restrictions. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. Unconditional promises to give that are expected to be collected within one year are recorded at their net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts are computed using riskfree interest rates applicable to the years in which the promises are received. Amortization of the discounts is included in contribution revenue. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Affiliate Support The National Black Law Students Association is the largest student run organization in the United States with over 6,000 members. The NBLSA is comprised of affiliates in six different countries including The Bahamas, Nigeria, and South Africa, and is organized into six regions--Northeast, Mid-Atlantic, Southern, Mid-West, Rocky Mountain and Western Region-- which represent operating segments for purposes of financial reporting. The organization has over 200 chapters and is present in all but a few of the nationâ&#x20AC;&#x2122;s accredited law schools, as well as unaccredited law schools.

Income Taxes NBLSA has received an exemption from the Internal Revenue Service indicating that it is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. NBLSA is subject to income taxes on revenue generated from sources unrelated to its exempt purpose. Accordingly, no provision for income taxes is made in the accompanying financial statements. Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Prior year information 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 NBLSAâ&#x20AC;&#x2122;s financial statements for the period ended May 31, 2010 and October 31, 2009, from which the summarized information was derived. Reclassifications Certain items in the prior year financial statements have been reclassified to conform with the current financial statement presentation. These reclassifications had no effect on the previously reported change in net assets. NOTE 2 â&#x20AC;&#x201C; SEGMENT REPORTING Our operations are geographically based and reportable operating segments presented below include our regional and national operations. Our operating units include Mid-Atlantic, Midwest, National, Rocky Mountain, Northeast, Southern, and Western Black Law Student Associations (BLSA).

The following includes the income sources and expenses for each operating unit: October 31, 2010

Mid-Atlantic Income Revenue from direct contributors Indiv/business contribution Corporate contributions Academic and professional development Conferences/Convention Job Fair Total Academic and professional development Total Corporate contributions Total Revenue from direct contributors Donated goods & services revenue Gifts in kind - goods Total Donated goods & services revenue Revenue from program-related sales & fees Academic and professional development (ER) Conventions/Conferences Job fairs Academic Retreats Total Academic and professional development (ER) Total Revenue from program-related sales & fees Revenues from dues Membership dues - individuals Assessments & dues - orgs Total Revenues from dues Revenue from investments Interest-savings/short-term inv Total Revenue from investments Revenue from other sources Miscellaneous revenue Total Revenue from other sources Special events Total Income Expenses Grant & contract expense Scholarships - program-related Academic and Professional Development Individual recognition Total Scholarships - program-related Total Grant & contract expense Contract Service Expenses Accounting fees Professional fees - other Academic and professional development Conference/Conventions Job Fairs Total Academic and professional development Total Professional fees - other Total Contract Service Expenses Non-personnel expenses Advertising and promotion Academic and professional development Total Advertising and promotion Office Expenses Information Technology Supplies Academic and professional development Total Supplies Donated materials & supplies Telephone & Telecommunications Postage, shipping, delivery Mailing services Printing & copying Academic and professional development Total Printing & copying

Mid-West

$ $ $

5,100 5,100 5,100 5,100

$ $

28,621 28,621

850

- $ - $ - $

32,681 32,681 32,681 33,531

$ $ $

- $

5,000 5,000

32,681 5,100 37,781 37,781 38,631 5,000 5,000 16,450 91,175 988

$ $

- $

33,721 $

$ $

$ $ $

(4,643) 150 150 (4,493) (4,493)

1,271 142 1,413 123 90 8 904 912 45 96 814 814

- $ 2,400 2,401 $

$ $

- $ - $ -

$ $ $

- $ - $ - $ -

- $ -

- $ - $ 1,295 270 1,565

- $

- $ 290 290 $ 40,386 $

1,000 1,000 1,000 3,028 16,864 300 6,267 6,567 23,431 26,459 35 877 877 144 414 91 91 4,138 470 860 45 43 43

$ $ $

- $ - $ - $ - $

5,360 (127)

1,450 6,720 -

6,000 -

60,590 $ 60,590 $

5,233 $ 5,233 $

8,170 $ 8,170 $

6,000 $ 6,000 $

173 173

11 11

- $ -

- $ 60,600 $

$ $

60,590 -

250 250 250

1 1

- $ -

$ $

TOTAL

Western

Southern

15,000 12,506 1,115

Rocky Mountain

850

Northeast

$ $ $

National

440 440 $ 5,672 $

$ $

- $ 1,950 1,950 $ 10,293 $

$ $

100 100 $ 100 $ 100 $

33 33 65 $ 65 $ 65 $

145 145 $ 999 - $ 84 68 68 $

- $ 5 (411) (411) $ - $

108,613 108,613 1,468 270 - $ 1,738 0 12 0 $ 12 2,680 - $ 2,680 2,400 6,000 $ 159,074

$ $

3 3 3 120 552 671 52 440 440 269 2 2,072 2,075

- $ - $

$ $ $

- $ - $ - $ -

- $ -

- $ 133 - $

250 1,000 1,250 1,250 3,028 12,224 300 6,449 133 6,882 19,106 22,134 35 2,413 694 3,106 1,271 556 127 904 1,030 4,138 515 1,358 129 45 2,954 3,000

Books, subscriptions, reference Total Non-personnel expenses Facility & equipment expenses Rent, parking, other occupancy Total Facility & equipment expenses Travel & meetings expenses Travel Academic and professional development Conventions/Conferences Total Academic and professional development Advocacy opportunities Total Travel Conference,convention,meeting Academic and professional development Conference/Convention Job Fairs Academic Retreats Alumni Networking Events Total Academic and professional development Total Conference,convention,meeting Travel Meals Total Travel & meetings expenses Misc expenses Insurance - non-employee Advertising expenses Other expenses Total Misc expenses Business expenses Fines, penalties, judgements Organizational (corp) expenses BOD Meetings National BOD Meetings Regional BOD Meetings Total BOD Meetings Total Organizational (corp) expenses Total Business expenses Donations Total Expenses Net Operating (Expense) Income Net (Expense) Income

Mid-Atlantic $ 3,493 -

$ $

$ $ $

$ $ $ $ $ $

85 359 766 1,125 1,210 288 4,621 39,606 9,691 53,918 54,205 55,415 50 159 209 27 402 402 429 429 55,303 (21,582) (21,582)

October 31, 2010 Rocky Mid-West National Northeast Mountain Southern Western TOTAL 38 38 $ - $ 7,155 $ 1,296 $ (407) $ 3,507 $ 133 $ 15,177 10 10 10 10 31 27 143 359 2 1,445 2,213 $ - $ - $ 2 $ - $ 1,445 $ - $ 2,572 2,364 2,364 $ - $ 2,364 $ 33 $ - $ 1,472 $ - $ 5,079 1,300 200 1,787 73 73 9,452 1,554 2,400 230 18,257 2,931 32,059 (80) 978 655 76,150 2,928 2,225 (9) 2,518 363 17,716 17,459 17,459 $ 5,860 $ 9,525 $ 53,297 $ 2,311 $ 3,726 $ 1,018 $ 129,654 $ 5,860 $ 10,825 $ 53,297 $ 2,511 $ 3,726 $ 1,018 $ 131,441 222 222 $ 5,860 $ 13,189 $ 53,551 $ 2,511 $ 5,198 $ 1,018 $ 136,742 23 23 425 425 50 35 1,066 124 3 1,386 $ - $ 460 $ 1,089 $ 124 $ 3 $ - $ 1,884 29 70 401 500 25 25 27 5,987 5,987 202 202 124 526 $ - $ 6,188 $ - $ - $ 124 $ - $ 6,714 $ - $ 6,188 $ - $ - $ 124 $ - $ 6,741 $ - $ 6,217 $ - $ 70 $ 550 $ - $ 7,266 5,000 5,000 $ 5,860 $ 54,480 $ 61,036 $ 2,372 $ 9,261 $ 1,151 $ 189,463 $ (3,458) $ (14,094) $ (436) $ 3,300 $ 1,031 $ 4,850 $ (30,389) $ (3,458) $ (14,094) $ (436) $ 3,300 $ 1,031 $ 4,850 $ (30,389)

The following includes assets, liabilities, and equity for each operating unit:

Mid-Atlantic ASSETS Current Assets Bank Accounts 1050-00 National - Cash on Hand 1051-00 Mid-Atlantic - Cash on Hand 1052-00 Mid-West - Cash on Hand 1053-00 Southern Region - Cash on Hand 1054-00 Western - Cash on Hand 1055-00 Rocky Mountain - Cash on Hand 1056-00 Northeast - Cash on Hand Total Bank Accounts Total Current Assets TOTAL ASSETS LIABILITIES AND EQUITY Total Liabilities Equity 3001-00 Opening Balance Equity 3010-00 Unrestricted (Retained Earnings) 3100-00 Temporarily restricted net asset Net Income Total Equity TOTAL LIABILITIES AND EQUITY

Mid-West

National

As of October 31, 2010 Rocky Northeast Mountain

Southern

Western

31,531

TOTAL

6,273 6,273 6,273

25,413 25,413 25,413

31,531 31,531 31,531

70,907 70,907 70,907 70,907

9,974 9,974 9,974

11,619 11,619 11,619

16,607 16,607 16,607

31,531 6,273 25,413 11,619 16,607 9,974 70,907 172,324 172,324 172,324

27,855 (21,582) 6,273 6,273

28,871 (3,458) 25,413 25,413

4,200 40,925 500 (14,094) 31,531 31,531

71,343 (436) 70,907 70,907

6,674 3,300 9,974 9,974

10,588 1,031 11,619 11,619

11,757 4,850 16,607 16,607

4,200 198,013 500 (30,389) 172,324 172,324

6,273 25,413 11,619 16,607 9,974

NOTE 3 â&#x20AC;&#x201C; TEMPORARILY RESTRICTED ASSETS As of October 31, 2010, there is $500 in temporarily restricted assets. This $500 is for specific use by a designated board of director for a leadership retreat.

Discussion and Analysis For the year to date fiscal period ended October 31, 2010, we have noted the following financial highlights: For the period ended October 31, 2010, there was a significant decrease in revenue sources of $194.5K in comparison to the same period ended October 31, 2009. This decrease is primarily due to decreases of $67.8K, $159.3K, and $41.5K in Direct contributions, Revenues from dues, and revenues from other sources, respectively, partially offset by an increase of $73.1K in Revenue from programrelated sales and fees and an increase of $5.0K in Donated goods & services revenue. For the period ended October 31, 2010, there was an increase in expenses of $28.1K in comparison to the same period ended October 31, 2009. This increase was primarily driven by an increase of $10.1K in Contract services, an increase of $7.3K in Business expenses, and an increase of $47.0K in Travel and meeting expenses, offset by a decrease in miscellaneous expenses in the amount of $41K. A combination of decreased revenues and increased in expenses resulted in a $30.4K loss, which is a decline of $222.6K, or 116%, in profitability when compared to the same period at October 31, 2009. The Mid-Atlantic, Midwest, National, and Northeast operating units have incurred losses of $21.6K, $3.5K, $14.1K, and $0.4K, respectively. However, all of these operating units have over 200% of the operating loss in cash balances except for Mid-Atlantic operating unit which only has approximately 30% of its operating loss in cash reserve.

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