Post on 25-Sep-2020
The American Institute for ContemporaryGerman Studies at The
Johns Hopkins University, Inc.
Financial Statements andIndependent Auditor's Report
June 30, 2012 and 2011
The American Institute for ContemporaryGerman Studies at The
Johns Hopkins University, Inc.
Table of Contents
Page
Independent Auditor's Report 1
Statement of Financial Position 2
Statement of Activities 3
Statement of Cash Flows 4
Statement of Functional Expenditures 5
Notes to Financial Statements 6-12
Independent Auditor's Report on Supplemental Information 14
Statement of Expenditures by Program 15
William A. Russ, CPA
Independent Auditor's Report
To the Board of DirectorsThe American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.Washington, DC
I have audited the accompanying Statements of Financial Position of The AmericanInstitute for Contemporary German Studies at The Johns Hopkins University, Inc., (anon-profit organization) as of June 30, 2012, and the related Statements of Activities andCash Flows for the year then ended. These financial statements are the responsibility ofthe Institute's management. My responsibility is to express an opinion on these financialstatements based on my audit. The prior year summarized comparative information hasbeen derived from the Institute's 2011 financial statements and, in my report datedSeptember 27, 2011,1 expressed an unqualified opinion on those financial statements.
I conducted my audit in accordance with generally accepted auditing standards in theUnited States of America. Those standards require that I plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe my audit provides areasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all materialrespects, the financial position of The American Institute for Contemporary GermanStudies at The Johns Hopkins University, Inc. as of June 30, 2012, and the changes in itsnet assets and its cash flows for the year then ended in conformity with generallyaccepted accounting principles.
September 28, 2012
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2316 Tucker Lane, Baltimore, Maryland 21207, (410) 448-9100, WmRussCPA@aol.com
The American Institute for Contemporary German Studiesat The Johns Hopkins University
Washington, D.C.
Statements of Financial PositionJune 30,2012 and 2011
2012 2011Assets
CurrentCash and cash equivalentsPledge receivablesGrants receivableOther receivablesPrepaid expenses and other assets
Total current assetsNon-current
Furniture, equipment and leasehold improvements, less accumulateddepreciation of $ 177,205 in 2012 and $ 170,319 in 2011
Investments, at fair value
Total assets
Liabilities and Net AssetsCurrent Liabilities
Johns Hopkins University overdraftAccounts payable
Net AssetsUnrestricted - undesignatedUnrestricted - board designated endowmentsTotal unrestricted
Temporarily restricted
Total net assets
Total liabilities and net assets
$ 206,538105,179184,9575,04664,966
$ 253,144255,470411,1942,82026,016
566,686
9,0892,836,361
2,845,450
3,412,136
76,30050,733
127,033
205,9952,836,3613,042,357
242,744
3,285,103
3,412,136
948,644
15,9752,786,382
2,802,357
3,751,001
25,20427,942
53,146
332,7122,786,3823,119,094
578,761
3,697,855
$3,751,001
The accompanying notes are an integral part of these financial statements.- 2 -
The American Institute for Contemporary German Studiesat The Johns Hopkins University
Washington, D.C.
Statements of ActivitiesFor The Years Ended June 30,2012 and 2011 (summarized)
RevenueContributions and grantsInterest, dividends and realized gainsOther revenues
Total revenues
Net assets released from restrictions:Satisfaction of program restrictions
Net revenues
ExpendituresProgram expendituresManagement and generalFund raising
Total expenditures
Change in net assets from operations
Unrealized gain (loss) on investments
Change in net assets
Net assets at beginning of year
Net assets at end of year
2012
Unrestricted
$ 987,84360,72417,937
1,066,504
606,420
1,672,924
1,069,948282,863316,828
1,669,639
3,285
(80,021)
(76,736)
3,119,094
$ 3,042,357
TemporarilyRestricted
$ 224,95945,444
270,403
(606,420)
(336,017)
-
(336,017)
-
(336,017)
578,761
$ 242,744
Total
$ 1,212,802106,16817,937
1,336,907
-
1,336,907
1,069,948282,863316,828
1,669,639
(332,732)
(80,021)
(412,753)
3,697,855
$ 3,285,103
2011Total
$ 1,305,940108,02915,680
1,429,649
1,429,649
987,238264,861271,304
1,523,403
(93,754)
261,114
167,360
3,530,495
$ 3,697,855'
The accompanying notes are an integral part of these financial statements.- 3 -
The American Institute for Contemporary German Studiesat The Johns Hopkins University
Washington, D.C.
Statements of Cash FlowsFor the Years Ended June 30, 2012 and 2011
Cash flows from operating activities:Increase (decrease) in net assets
Adjustments to reconcile change in netassets to net cash used by operating activities:
DepreciationDecrease (increase) in pledges receivableDecrease (increase) in grants receivableDecrease (increase) in other receivablesDecrease (increase) in prepaid expenseIncrease (decrease) in JHU overdraftIncrease (decrease) in accounts payable
Net cash provided by operating activities
Cash flows from investing activities:Realized gains & other income from JHU endowmentInterest earned on board designated endowment paid by bankContributions designated to endowmentsUnrealized loss (gain) on investmentsDistributions from JHU board designated endowments
Net cash used in investing activities
Net increase (decrease) in cash
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
2012
$ (412,753)
3,371
(104,942)(489)
(129,500)80,021
104,934
2011
$ 167,358
6,885150,291226,237(2,226)(38,950)51,09622,791
8,2843,52832,827(1,106)18,40722,819(4,620)
247,497
(107,075)(468)
(47,000)(261,114)107,074
(49,977) (308,583)
(46,606) (61,086)
253,144 314,230
$ 206,538 $ 253,144
The accompanying notes are an integral part of these financial statements.- 4 -
The American Institute for Contemporary German Studiesat The Johns Hopkins University
Washington, B.C.
Statement of Functional ExpendituresFor The Years Ended June 30, 2012 and 2011 (summarized)
Salaries
Personnel benefits
Books, subscriptions, reference
Equipment rental and maintenance
General office
Occupancy
Printing & copying
Telephone
Travel
Seminars/conferences/workshops
Award dinner/project development
Admin overhead
Miscellaneous fees and staff development
Depreciation
General contractual services
Consultants/professional fees
Honoraria
Stipends
Program
Services
$ 376,969
133,187
814
325
21,027
178,871
21,691
2,792
87,477
45,301
859
14,480
251
2,118
58,586
32,000
93,200
1,069,948
2012
Management
& General
$ 56,996
21,468
4,820
8,693
75,944
1,957
20,030
41,555
3,287
6,589
4,768
36,756
282,863
Fundraising
$ 70,543
27,720
1,011
4,691
104
3,891
125,303
83,565
316,828
Total
$ 504,508
182,375
814
5,145
30,731
254,815
28,339
22,926
132,923
45,301
129,449
14,480
6,840
6,885
58,586
120,321
32,000
93,200
1,669,639
Total
2011
S 469,565
165,047
1,241
11,062
23,643
242,586
27,313
20,550
126,879
72,630
87,845
13,697
4,158
8,284
109,148
17,280
43,874
78,600
1,523,402
The accompanying notes are an integral part of these financial statements.- 5 -
The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30, 2012 and 2011
Note 1 Organization and Summary of Significant Accounting Policies
Organization
Located in Washington, D.C., the American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc. (Institute) is an independent, non-profit public policyorganization, which works in Germany and the United States to address current and emergingpolicy challenges. Founded in 1983, the Institute is affiliated with The Johns Hopkins University(University). The Institute is governed by its own Board of Trustees, which includes prominentGerman and American leaders from the business, policy, and academic communities. Throughoriginal analyses, dialogue, conferences, and other activities, AICGS is helping to sustainGerman-American and transatlantic cooperation in a new century. In 2007 an independentassociation called AICGS e. V. was established under the laws of the Federal Republic of Germany.This eingetragener Verein was established to allow German residents to make tax deductibledonations to support the mission of the Institute.
Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposits with financial institutions and withthe University. The University holds and disburses the Institute's funds in support of its normaloperations. Net cash (overdraft) on deposit with the University on June 30, 2012 and 2011amounted to $(76,300) and $(25,204) respectively.
Fund Accounting
To insure the observance of limitations and restrictions placed on the use of resourcesavailable to the Institute, the accounts of the Institute are maintained in accordance with theprinciples of fund accounting. This is the procedure by which resources for various purposes areclassified for accounting and recording purposes into funds established according to their natureand purposes. Separate accounts are maintained for each fund; however, in the accompanyingfinancial statements, funds that have similar characteristics have been combined into fund groups.All the Institute's financial transactions have been recorded as operating funds and classified aseither unrestricted or temporarily restricted.
The Institute reports gifts of cash and other assets as restricted support if they arereceived with donor stipulations that limit the use of the donated assets. When a donor restrictionexpires, that is, when a stipulated time restriction ends or the purpose restriction is accomplished,temporarily restricted net assets are reclassified to unrestricted net assets and reported in thestatement of activities as net assets released from restrictions.
Unrestricted Funds
Operating funds that are not restricted by the donor are reported as revenue in the periodreceived. Pledges, less an allowance for un-collectible amounts, are recorded as receivables in theperiod pledged.
The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30, 2012 and 2011
Note 1 Organization and Summary of Significant Accounting Policies (Continued)
Temporarily Restricted Funds
Gifts of cash or other long-lived assets with explicit restrictions that specify how theassets are to be used are reported as temporarily restricted support. Absent explicit donorstipulations about how those long-lived assets must be maintained, the Institute reports expirationsof donor restrictions when the donated or acquired long-lived assets are placed in service.
Board Designated Endowment
Unrestricted contributions have been designated by the Institute's Board of Directors asendowment funds. Donors have stipulated certain contributions be invested in this otherwiseunrestricted endowment funds. Accordingly, additional contributions from donors have beeninvested into one of two board designated endowment funds. As of June 30, 2012, the Institutehas not received any permanently restricted contributions.
A portion of the Institute's endowment funds have been invested in The Johns Hopkins Universityendowment pool with the remaining funds invested in a money market bank account. A portion ofthe endowment fund income and gains (realized and unrealized) have been designated to benefitthe Institute's Harry & Helen Gray Culture & Politics Program with the remaining fundssupporting general operations. The fair market value of the endowment funds invested at June 30,2012 and 2011 are as follows:
2012 2011Humanities program $1,034,471 $ 1,068,562General operations 1,801,890 1,717,820
Total endowment funds $2,836,361 $ 2,786,382
An additional $129,500 and $47,000 was designated by the Institute's Board of Directors asendowment funds during the years ending June 30, 2012 and 2011, respectively.
Equipment
Equipment has been stated at cost. Depreciation is provided on the straight-line methodover the estimated useful lives of the assets. Repairs and maintenance are charged to earnings asincurred. Leasehold improvements are capitalized. When assets are sold, retired, or otherwisedisposed of, the applicable costs and allowances are removed from the accounts and the resultinggain or loss is recognized. Depreciation expense was $6,885 and $8,284 for the years ending June30, 2012 and 2011, respectively.
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The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30, 2012 and 2011
Note 1 Organization and Summary of Significant Accounting Policies (Continued)
Use of Estimates
The preparation of the financial statements in conformity with generally acceptedaccounting principles requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclose of contingent assets and liabilities at thedate of the financial statements and reported amounts of revenue and expenses during thereporting period. Actual results could differ from those estimates.
Direct and Shared Costs
Direct costs consist of costs incurred that are readily identifiable to a programobjective. Shared costs include costs that are not readily identifiable to a specific programobjective but consist of elements attributable to achieving more than one program objective or tothe overall programmatic mission of the Institute. Significant shared costs include expendituresassociated with occupancy and salaries. Shared occupancy costs are allocated to the Institute'sprograms proportionally by square footage of space utilized. Shared salary costs are allocated tothe Institute's programs based on estimates of time and effort reported by employees.
Comparative Amounts
The amounts shown for 2011 in the accompanying statement of activities are included toprovide a basis for comparison with 2012. They do not include all of the information necessaryfor a fair presentation of the 2011 activities in conformity with generally accepted accountingprinciples.
Fair Value Measurements
The Institute categorizes its assets measured at fair value into a three-level hierarchybased on the priority of inputs to the valuation technique used to determine fair value. The fairvalue hierarchy gives the highest priority to quoted prices in active markets for identical assets(Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in thedetermination of the fair value measurement fall within different levels of the hierarchy, thecategorization is based on the lowest level input that is significant to the fair value measurement.Assets valued at fair value are categorized based on the inputs to the valuation techniques asfollows:
Level 1 - Valuations based on unadjusted quoted prices for identical assets or liabilities inactive markets;
Level 2 - Valuations based on quoted prices for similar assets or liabilities or identicalassets or liabilities in less active markets, such as dealer or broker markets; and
Level 3 - Valuations derived from valuation techniques in which one or more significantinputs or significant value drivers are unobservable. such as pricing models, discountedcash flow models and similar techniques not based on market, exchange, dealer or brokertraded transactions. The only assets or liabilities which are valued at fair value on arecurring basis consist of investments in equity securities and mutual funds.
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The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30,2012 and 2011
Note 2 Temporarily Restricted Net Assets
Temporarily restricted net assets available for the Institute's programs after June 30 areas follows:
Bosch Health Care Reform ProjectBusiness & Economics ProgramSociety, Culture & Politics ProgramDAAD FellowshipDaimler Energy Policy ProgramDeutsche Bank FellowshipDraeger Foundation Lecture SeriesStifterverband fur due Deutsche Wissenschaft FellowshipERP Responses to Economic CrisisF.H. Langhammer Luncheon SeriesGMF Work Study GroupsHarry and Helen Gray Culture & Politics ProgramNRW FellowshipOther ProgramsForeign & Domestic Policies Program
2012 2011$ 46,443
23,1078,551
65,62456,122
-(10,594)
6,41019,525
7,0209,3265,2265,984
$ 242,744
$ 130,83523,9729,864
192,676-
3,8973,9669,562
76,90517,34746,87018,03319,2686,161
19,405
$ 578,761
Note 3 Contributions and Grants
Contributions and grants consist of the following as of June 30, for the following years:
Unrestricted trustee contributionsUnrestricted membership donationsGlobal Leadership Award Dinner revenuesOther contributions
Unrestricted contributions and support
Restricted trustee donationsRestricted membership donationsOther restricted grants
Restricted contributions and support
Total contributions and support
2012 2011$ 1 14,979
52,621820,243
987,843
113,82340,04771,089
224,959
$ 185,97946,932586,8462,500
822,257
25,00085,567373,116
483,683
$ 1,212,802 $ 1,305,940
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The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30, 2012 and 2011
Note 4 Investments
The Institute has invested its endowment funds into the University's Endowment Pooland in a money market fund at a bank. The Institute considers its investment in the JHUEndowment Fund as an investment available for sale. Contributions into the endowment pool,reinvested earnings and realized gains for the years ending on June 30 are as follows:
Board Designated Investments2012
Cost Market
Investment in JHU Endowment Fund
Humanities endowment $ 640,200
Board endowment 1,787,922
Accumulated
Unrealized
Gain (Loss)
$ 394,271
13,968
2,428,122 $ 2,836,361 $ 408,239
1,034,471
1,801,890
Investment in JHU Endowment Fund
Humanities endowment $ 640,200
Board endowment 1,658,422
2011
Cost Market
Accumulated
Unrealized
Gain (Loss)
$ 1,068,562 $ 428,362
1,717,820 59,398
1 2,298,622 ~$ 2,786,382 $ 487,760'
Note 5 Fair Value Measurement
The Institute uses fair value measurement to record fair value adjustments to certain assets and todetermine fair value disclosures. For additional information on how the Institute measures fairvalue refer to Note 1 - Organization and Summary of Significant Accounting Policies.
Investment in JHU Endowment Fund and Commercial Money Market Account - Shares inthe JHU Endowment Pool are valued at the Institute's proportional share of the pool's investmentin debt and equity securities. Such investments are classified within Level 1 of the valuationhierarchy.
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The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30, 2012 and 2011
Note 5 Fair Value Measurement (continued)
The following table presents assets measured at fair value by classification within the fair valuehierarchy as of June 30, 2012:
Fair Value Measurements Using
Shares in JHUEndowment Pool
Deposits atcommercial banks
Total
The following table presents assetshierarchy as of June 30, 201 1 :
Quoted Prices inActive Markets for
Identical Assets(Level 1)
$ 2,428,110
408,251
$ 2,836,361i _
measured at fair value
SignificantOther Significant
Observable UnobservableInputs Inputs
(Level 2) (Level 3)
$ $ -
-
$ - $ -
by classification within the
Total
$ 2,428,110
408,251
$ 2,836,361
fair value
Fair Value Measurements Using
Shares in JHUEndowment Pool
Deposits atcommercial banks
Total
Quoted Prices in
Active Markets forIdentical Assets
(Level 1)
$ 2,508,127
278,255
$ 2,786,382
SignificantOther Significant
Observable UnobservableInputs Inputs
(Level 2) (Level 3)
$ $ -
-
$ - $ -
Total
$ 2,508,127
278,255
$ 2,786,382
The American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial StatementsJune 30, 2012 and 2011
Note 6 Lease Obligation
The University has entered into a lease of the office space used by the Institute at 1755Massachusetts Avenue, NW, in Washington, D.C. The Institute reimburses the University for itsuse of this space. The lease period extends to 31 March 2014 and is classified as an operatinglease. Rent expense was $254,815 and $242,586 for the years ended June 30, 2012 and 2011,respectively. The Institute's minimum lease obligation for years ending on June 30 are as follows:
Year Amount
2013 257,3482014 198,744
Note 7 Tax Status
The financial statements do not include a provision for income taxes because theInstitute is a tax-exempt organization. Should that status be challenged in the future, theInstitute's 2009, 2010 and 2011 tax years are open for examination by the IRS. The IRShas not classified the Institute as a private foundation.
Note 8 Pension and Post-Retirement Benefit Plans
The Institute participates in a multi-employer defined contributions pension plan of theUniversity. The plan is available to substantially all employees. The Institute pays its portion ofthe cost of this plan through the fringe benefits charge it is assessed by the University. During theyears ended June 30, 2012 and 2011, the Institute contributed $182,375 and $165,047 into theUniversity's fringe benefits pool, respectively. The retirement plan portion of the benefit plancontribution was $53,039 and $38,050, respectively.
Note 9 Subsequent Events
Management evaluated subsequent events through September 28, 2012, the date thefinancial statements were available to be issued. Events or transactions occurring after June 30,2012, but prior to September 28, 2012, that provided additional evidence about conditions thatexisted at June 30, 2012, have been recognized in the financial statements for the year ended June30, 2012. Events or transactions that provided evidence about conditions that did not exist at June30, 2012 but arose before the financial statements were available to be issued have not beenrecognized in the financial statements for the year ended June 30, 2012.
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The American Institute for ContemporaryGerman Studies at The
Johns Hopkins University, Inc.
Supplementary Information
June 30,2012 and 2011
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William A. Russ,CPA
Independent Auditor's Report on Supplementary Information
To the Board of DirectorsThe American Institute for Contemporary German Studiesat The Johns Hopkins University, Inc.
Washington, DC
I have audited the financial statements of The American Institute for ContemporaryGerman Studies at the Johns Hopkins University, Inc., as of and for the year ended 30June 2012, and have issued my report thereon dated 28 September 2012 which containedan unqualified opinion on those financial statements. My audit was performed for thepurpose of forming an opinion on the financial statements as a whole. The accompanyingStatement of Expenditures by Program is presented for the purposes of additionalanalysis and is not a required part of the financial statements. Such information is theresponsibility of management and was derived from and relates directly to the underlyingaccounting and other records used to prepare the financial statements. The informationhas been subjected to the auditing procedures applied in the audit of the financialstatements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare thefinancial statements or to the financial statements themselves, and other additionalprocedures in accordance with auditing standards generally accepted in the United Statesof America. In my opinion, the information is fairly stated in all material respects inrelation to the financial statements as a whole.
September 28, 2012
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2316 Tucker Lane, Baltimore, Maryland 21207, (410) 448-9100, WmRussCPA@aol.com
The American Institute for Contemporary German Studiesat The Johns Hopkins University
Washington, D.C.
Statement of Expenditures by ProgramFor The Years Ended June 30,2012 and 2011 (summarized)
Bosch Health Care Reform
Business & Economics Program
DAAD Fellowships 2010-2012
Daimler Energy Policy Program
DaimlerFonds Transatlantic Climate & Energy
Deutsche Bank Economic Roundtable/Fellowhip Series
DGroup Security Project
Draeger Muslim Immigration Conference
ERP Risk Project
F.H. Langhammer Luncheon Series
GMF - A New Generation's Transatlantic Dialogue for the Future
German Marshall Fund New Generation Project
Harry and Helen Gray Culture & Politics Program
NRW Fellowship
Foreign & Domestic Policy Studies Program
Society, Culture & Politics Program
Steven MullerNew Initiatives Fund
Thyssen Terrorism Project
ERP German & American Responses to the Economic Crisis
Stifterverband fur due Deutsche Wissenschaft Fellowship
Shared program costs (net)
Direct Costs
$ 84,392
15,373
140,851
-
15,428
750
-
26,479
-
22,822
46,870
-
55,719
9,943
14,246
2,912
81,705
-
77,060
9,562
2,309
606,421
2012
Shared Costs
$ 39,542
42,782
51,098
-
23,125
15,049
-
24,098
26,792
25,790
27,751
-
29,683
26,316
26,473
23,386
25,771
-
33,509
22,362
2
463,529
2011
Total Charged to Programs
$ 123,934
58,155
191,949
-
38,553
15,799
-
50,577
26,792
48,612
74,621
-
85,402
36,259
40,719
26,298
107,476
-
110,569
31,924
2,309
1,069,948
$ 32,195
42,873
175,247
63,412
25,778
18,617
67,685
21,387
-
32,453
58,974
46,631
86,045
32,238
52,182
43,622
38,554
12,244
88,142
47,796
1,163
987,238
The accompanying notes are an integral part of these financial statements.See independent auditor's report on supplementary information.
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