Document B8yOY8ddmKLJ6541Ovyww7J8k

E N V IR O N M E N T A L R E S E A R C H FO U N D ATIO N , INC. REPORT ON FIN AN C IAL STATEM EN TS FO R T H E Y E A R E N D E D D E C E M B E R 31, 1992 W ITH C O M PAR ATIV E TO TALS FO R T H E P ER IO D D E C E M B E R 1, 1990 TO D E C E M B E R 31, 1991 C00420 ENVIRONMENTAL RESEARCH FOUNDATION, INC. CONTENTS IN D EPEN D EN T AUDITO RS* REPO R T EXH IBIT A - Balance Sheets, a s of Decem ber 31, 1992, with Comparative Totals for Decem ber 31,1991 EXH IBIT B - Statement of Revenue, Expenses and C hanges In Fund Balance for the Year Ended December 31, 1992 with Comparative Totals for the Period Decem ber 1,1990 to December 31,1991 N O T ES TO FIN AN CIAL STATEM EN TS Page No. 5-6 -1- 000421 MICHAEL C. GELMAN JERROLD ROSENBERG MICHAEL A. FREEDMAN DAVID F.GRALING WALTER H. DEYHLE ROBERT W. ALBRECHT G elman, Rosenberg & Freedman CERTIFIED PUBLIC ACCOUNTANTS A Professional Corporation SUITE 400 4800 HAMPDEN LANE BETHESDA, MARYLAND 20814-2930 IN D EP EN D EN T A U D IT O R S' R EPO R T TELEPHONE (301) 951*9090 TELEFAX (301)951-3570 To the Board of Directors Environmental Research Foundation, Inc. Annapolis, M D W e have audited the balance sheet of the Environmental Research Foundation, Inc. as of Decem ber 31,1992, and the related statement of revenue, expenses, and changes in fund balance for the year then ended. These financial statements are the responsibility of the Foundation's m anagem ent Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. 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 am ounts and disclosures In the financial statements. An audit also includes a sse ssin g the accounting principles used and significant estimates made by management, a s well as evaluating the overall financial statement presentation. W e 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 financial position of the Environmental Research Foundation, Inc. as of Decem ber 31,1992, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. February 4, 1993 2- - Member of the American Institute of Certified Public Accountants' Private Companies Practice Section 000-322 ENVIRONMENTAL RESEARCH FOUNDATION, INC. BALANCE SHEET A S O F D E C E M B E R 31, 1992 W ITH C O M PAR ATIV E TO TALS A S O F D E C E M B E R 31, 1991 EXH IBIT A ASSETS CURRENT ASSETS Cash Accounts receivable Security deposit Other current assets Total current assets FU RN ITU RE A N D EQ U IP M EN T Furniture Equipm ent Computer equipment Less: Accumulated depreciation Net furniture and equipment TOTAL ASSETS LIA B ILIT IES A N D FUND B A LA N C E LiA B IL IT IE S Accounts payable Deferred revenue Payroll taxes payable Accrued expenses Total liabilities FUND BALANCE TO TAL LIA B ILIT IES AN D FUND B A LA N C E 1992 $157,662 155 2,800 1.175 161.792 1991 $145,667 1,600 1.130 148.397 9,001 16,765 51.311 77,077 (31.7531 45.324 $207.116 6,960 14,578 41.021 62,559 (18.037) 44.522 $192.919 $ 9,476 132,500 264 2.901 145,141 61.975 $207.116 $ 6,142 126,250 132,392 60.527 $192.919 See accom panying notes to financial statements. -3- 000423 EXHIBIT B ENVIRONMENTAL RESEARCH FOUNDATION, INC. STATEM EN T O F REVENUE, E X P E N S E S A N D C H A N G E S IN FU N D B A LA N C E FO R TH E YEA R E N D E D D E C E M B E R 31. 1992 ` W ITH CO M PARATIVE TO TALS FO R TH E P E R IO D D E C E M B E R 1, 1990 TO D E C E M B E R 31. 1991 ncvcNUc Grants Contributions Publication sales Special events Interest Income Miscellaneous Income Total revenue EXPEN SES Salaries Consultant Benefits Payroll taxes Rent Insurance Postage Printing Computer expenses Publication Mem bership Telephone Professional fees Supplies Contribution Conferences Travel M isce llan e o u s Depreciation L o ss on disposal of furniture and equipment Special events Equipment rentals Total expenses Excess (Deficiency) of Revenue with Respect to Expenses Fund Balance at Beginning of Year, as Restated (Note 4) FUND BALANCE AT END OF YEAR General and Administrative $- 10,633 693 681 865 1,968 114 525 135 817 94 510 366 329 . 487 2 106 1,066 203 19.594 S f19.5941 1992 Proaram $243,750 8,038 30,280 - 5,024 650 287.742 118,698 13,720 7,836 9,944 22,634 1,029 23,897 10,898 12,265 3,497 460 6,784 3,789 5,963 23 883 8,303 1,093 12,650 2.334 -266,700 $ 21.042 Total . $243,750 8,038 30,280 - 5,024 650 287.742 129,331 14,413 8,517 10,809 24,602 1,143 24,422 11,033 13,082 3,591 970 7,150 4,118 6,450 25 883 8,303 1,199 13,716 2.537 286.294 1,448 1991 Total $198,333 4,619 31,119 15,802 3,849 253.722 131,569 - 4,914 7,864 30,607 1,785 23,554 11,587 8,295 3,432 800 6,891 5,717 6,606 350 1,360 10,155 1,440 11,318 872 4,484 ___ JL429 275.039 (21.317) 60.527 S 61.975 81.844 $ 60.527 See accom panying notes to financial statements. -4- 000424  e; * ENVIRONMENTAL RESEARCH FOUNDATION, INC. N O T ES TO FIN AN CIAL STATEM EN TS D E C E M B E R 31, 1992 1. S U M M A R Y O F SIG N IF IC A N T A C C O U N T IN G P O L IC IE S A N D G E N E R A L IN F O R M A T IO N Organization - Environmental Research Foundation, Inc. (ERF) w as Incorporated In New Jersey In 1980 as a nonprofit organization. E R F provides the public with useful information about environmental problems to enhance democratic decision making In the development of public policies leading to solutions. B asis of presentation - The Foundation's financial statements are prepared on the accrual basis of accounting. Therefore, revenue and related assets are recognized when earned and expenses and related liabilities are recognized when the obligations are incurred. During 1991, E R F changed its fiscal year end to Decem ber 31,1991. The accom panying financial statements include comparative am ounts for the period from Decem ber 1, 1990 to December 31, 1991. Comparative data - The comparative figures as of December 31, 1992 and for the period Decem ber 1, 1990 to Decem ber 31,1991 show n in the accom panying financial statements are presented in accordance with the format, recommended by the American Institute for Certified Public Accountants. This financial information is included to provide a basis for com parison with 1992, presenting summarized " totals only. Accordingly, the 1991 am ounts are not intended to present all information necessary for a fair presentation In accordance with generally accepted accounting principles. Incom e taxes - The Foundation is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for Income taxes has been made In the accom panying financial statements. Deferred revenue - Revenue froffi grants received in the current year to be used as support for the following year has appropriately been recorded as a current liability. Furniture and equipment - Furniture and equipment are stated at cost. Depreciation is provided on the straight-line basis over the estimated useful lives of the related assets, generally five years. -5- 000425 ENVIRONMENTAL RESEARCH FOUNDATION, INC. N O T ES TO FINANCIAL ST ATEM EN TS D EC E M B E R 31, 1992 2. C O M M IT M E N T S In September, 1992 E R F entered Into a lease expiring Novem ber 30,1995 for office space. Minimum future rental payments required under the lease are a s follows: 1993 1994 1995 $23,247 23,247 -21,307 $67.801 3. LITIG A TIO N The Foundation Is a defendant In a libel action brought by an Individual. Legal counsel for the Foundation has filed a motion to dism iss the plaintiff's claim on the grounds that the article w as really a report of Judicial and governmental activity, and therefore Is absolutely privileged. The Foundation has not received a ruling from the Court on that motion. In the opinion of the Foundation's management and legal counsel, there are other defenses available to them. At this time, it Is not possible to estimate the effect, If any, an adverse verdict might have on the Foundation's financial statements. 4. P R IO R P E R IO D A D JU S T M E N T An error resulting in an overstatement of fund balance w as discovered during the current year. A grant of $35,000 w as included In revenue in 1991, when it should have been deferred to 1992. A retroactive adjustment w as made to the following December 31,1991 balances. Before Adjustment After Adjustment Deferred revenue Fund balance Grant revenue Net Incom e (Loss) $ 91,250 95,527 233,333 13,683 $126,250 60,527 198,333 (21,317) 6* - C0042S