Audited Financial Statements: Council for Exceptional Children: December 31, 2011

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Independent Auditor's Report

To the Board of Directors

The Council for Exceptional Children

We have audited the accompanying statements of financial position of the Council for Exceptional Children (the Council) as of December 31, 2011 and 2010, and the related statements of activities, functional expense, and cash flows for the years then ended. These financial statements are the responsibility of the Council's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits 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 statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Council for Exceptional Children as of December 31, 2011 and 2010, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Tate & Tryon

Washington, DC

March 27, 2012

            COUNCIL FOR EXCEPTIONAL CHILDREN
             Statement of Financial Position
                December 31, 2011 and 2010

Year Ended December 31,                  2011        2010

Assets

  Cash and cash equivalents        $2,492,542  $3,597,218
  Investments                       3,220,108   3,220,064
  Accounts receivable                 248,193     366,918
  Inventory                           439,214     458,363
  Prepaid expenses and
    other assets                      442,159     399,093
  Property and equipment            1,736,050   1,244,738

Total Assets                       $8,578,266  $9,286,394

Year Ended December 31,                  2011        2010

Liabilities and Net Assets

Liabilities
  Accounts payable and
    accrued expenses                 $400,151    $607,199
  Amounts due to divisions            188,516     221,773
  Refunds payable to affiliated
    units                             323,585     335,798
  Deferred revenue                  2,236.445   2,896,304
  Deferred compensation               143,208     158,089
  Deferred rent & lease
    incentive                       1,764,777   1,122,718
    Total Liabilities               5,056,682   5,341,881

Commitments and contingencies
Net assets
  Unrestricted                      3,502,136   3,926,247
  Temporarily restricted               19,448      18,266
    Total net assets                3,521,584   3,944,513

Total Liabilities and
Net Assets                         $8,578,266  $9,286,394

             COUNCIL FOR EXCEPTIONAL CHILDREN
                   Statement of Activities
     For the Years Ended December 31, 2011 and 2010

Year Ended December 31,                  2011        2010

Unrestricted Activities

Revenue and Support

  Member dues, net of
    affiliated unit refunds         3,156,426   3,310,845
  Convention and
    conferences                     2,207,776   2,543,769
  Publications                        863,805     939,522
  Service revenue and royalties       374,959     350,911
  Subscriptions                       368,625     402,997
  Advertising                         133,978     153,549
  Membership list rental              133,271     122,160
  Other products and services         100,523      63,488
  Interest and dividends               91,071      80,147
  Contracts                            23,775      36,491
  Rental Income                           --      136,718

                                    7,454,209   8,140,597

Net assets released from
  restriction-satisfaction
  of program restriction               80,623      87,513

Total Unrestricted Revenue
and Support                         7,534,832   8,228,110

Year Ended December 31,                  2011        2010

Expense

  Program Services
    Publications/continuing
      education                     1,523,719   1,491,857
  Convention                        1,273,671   1,235,032
  Marketing and
    communications                  1,086,882   1,112,405
  Membership                          996,932     962,835
  Public policy                       637,309     660,648
  Constituent services                360,303     363,852
  Professional standards              306,640     318,092
  Grants and contracts                 23,775      36,490

  Total program services            6,209,231   6,181,211

Supporting services
  Management and general            2,119,627   2,212,315

  Total expense                     8,328,858   8,393,526

  Change in net assets
    before other items              (794,026)   (165,416)

Special contribution                  426,332
Net (loss) gain on investments       (56,417)     192,973

  Change in unrestricted
  net assets                        (424,111)      27,557

Temporary restricted activities

  Contributions                        81,805      82,796
  Net assets released from
  restriction                        (80,623)    (87,513)

    Changes in temporarily
      restricted net assets             1,182     (4,717)

Change in net assets                (422,929)      22,840

Net Assets,
Beginning of Year                   3,944,513   3,921,673

Net Assets,
End of Year                         3,521,584   3,944,513