Independent Auditor's Report
To the Board of Directors The Council for Exceptional Children
We have audited the accompanying financial statements of The Council for Exceptional Children (the Council), which comprise the statements of financial position as of December 31, 2012 and 2011 and the related statements of activities, functional expense, and cash flows for the years then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and Fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material mis-statement, whether due to fraud or error.
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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of" the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Council's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Council's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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, 2012 and 2011, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Tate & Tryon
March 25, 2013
COUNCIL FOR EXCEPTIONAL CHILDREN
Statement of Financial Position
December 31, 2012 and 2011
Year Ended December 31, 2012 2011
Cash and cash equivalents $1,567,053 $2,492,542
Investments 3,485,914 3,220,108
Accounts receivable 112,694 248,193
Inventory 279,694 439,214
Prepaid expenses and
other assets 397,888 442,159
Property and equipment 2,353,996 1,736,050
Total Assets $8,197,239 $8,578,266
Liabilities and Net Assets
Accounts payable and
accrued expenses $507,583 $400,151
Amounts due to divisions 173,395 188,516
Refunds payable to afilliated
units 297,065 323,585
Deferred revenue 2,491,511 2,236. …